A-Share Reversal Screen Using Intraday Range, Engulfing Patterns, and Returns

Summary

This document presents a daily stock-selection screen based on three price conditions: an intraday range greater than 1%, a reversal or engulfing-style candle pattern, and a daily return between -5% and 2.6%. It characterizes the idea as a possible trend-reversal screen and includes example indicator-formula and Python implementations. The Python example additionally sorts selected stocks by a heat ranking, while the formula example refers to a hot-sector ranking.

The post gives no backtest, sample period, benchmark, or measured trading results. It warns that the screen relies on price behavior, ignores company fundamentals, and may be unstable during market-wide or short-term volatility. It suggests broadening analysis with technical, fundamental, or macroeconomic inputs, but does not specify validated filters or execution rules. The candle-pattern implementation and the prose description may not be equivalent in every data environment, so the signal definition would need careful verification before evaluation.

Key ideas

• The screen combines an intraday range above 1%, a reversal-style candle condition, and a bounded daily return.
• The post supplies formula and Python examples and ranks candidates by a heat-related measure.
• It describes the approach as a possible reversal signal but provides no performance evidence.
• The stated limitations include omitted fundamentals and sensitivity to short-term and market-wide moves.
• The candle-pattern code should be checked against the intended reversal definition before testing.

Tags

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