A Share Screen for Limit-Down Opens, Daily Range, and Recovery

Summary

This stock-selection note screens for shares with amplitude above 1, a prior-day 9:15 matched price at the limit-down level, and a close above the previous day’s low. Its revised version adds a close above the three-day moving average. The proposed interpretation is that the limit-down indication reflects market pressure while the close above the prior low and short moving average suggests recovery. A formula and a sample Python approach are included, with a suggestion to sort qualifying shares by total market value.

The note cautions that the conditions are simple, may return too many names, and omit company fundamentals. It proposes adding financial or technical measures and risk controls such as stop losses and position limits. It supplies no historical performance evidence, and the code is labeled for adaptation; the exact meaning of the opening matched-price condition and its implementation should be checked against the data source before use.

Key ideas

• The initial screen combines amplitude above 1, a prior-day 9:15 limit-down matched price, and a close above the previous low.
• The revised screen also requires the close to exceed the three-day moving average.
• The article proposes market pressure followed by price recovery as the setup’s rationale.
• It warns about omitted fundamentals, excess qualifying stocks, and the need for risk controls.
• No backtest results are supplied, and the example code may require data-source-specific changes.

Tags

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