A Metaverse Stock Screen Using Float Size and Reversal Candles

Summary

The proposed screen selects stocks in the metaverse industry with a stated circulating share float ceiling, then applies a daily candle condition. The article defines its “reversal” pattern as an opening price above the previous close followed by a close below the current open, a bearish candle after an upward gap. It provides a formula reference and a Python example, but the example’s data handling does not clearly implement a per-stock float screen, so it should not be treated as validated code.

The author cautions that the screen omits company finances, industry prospects, and historical performance, and that restrictive filters may yield few stocks and reduce diversification. Suggested improvements include adding fundamental and historical measures and relaxing float or liquidity constraints. No backtest or return evidence is supplied, and the candle label alone does not establish a profitable reversal strategy.

Key ideas

• The screen combines metaverse industry membership, a circulating-float ceiling, and a gap-up candle that closes below its open.
• The stated candle condition is bearish and does not by itself demonstrate a reversal in subsequent prices.
• The article warns that omitted fundamentals and restrictive filters can increase risk and limit diversification.
• The provided code example is not clearly a reliable per-stock implementation of the stated float criterion.
• No backtest results or evidence of profitability are reported.

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