A Bollinger Band and Turnover Screen for Active Stocks

Summary

This stock-selection idea filters for daily price amplitude of at least 1%, turnover above 2% and no more than 9%, and a closing price between the middle and upper Bollinger Bands. The post presents these conditions as a way to find actively traded, volatile shares whose prices are above the band midpoint without reaching the upper band. It includes indicator formula references and a Python example using market data and Bollinger calculations.

The proposed screen is entirely technical and does not report backtest results, risk-adjusted returns, or evidence that the selected range predicts future performance. The author notes that technical signals alone may be insufficient and suggests adding valuation, dividend, market-style, and trend considerations. The sample code also focuses on recently limit-up stocks and has data-handling details that may not match the broader written rule. Any application would need consistent definitions, point-in-time data, and independent testing.

Key ideas

• The screen requires daily amplitude of at least 1% and turnover between 2% and 9%.
• It selects closes above the Bollinger middle band but below the upper band.
• The stated rationale combines volatility, trading activity, and technical positioning.
• The post cautions that technical indicators alone omit company fundamentals.
• No performance evidence is supplied, and the code example adds a limit-up-stock filter.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.