A Short-Term Stock Screen Using Range, Price, and Recent Highs

Summary

This stock-selection post describes a technical filter based on three stated conditions: amplitude greater than 1, a K-line value below 20, and a high that is the highest over two days. Its accompanying examples instead express a close above the 20-day moving average and a current high above previous highs, with sample implementations in a chart formula and Python. The proposed interpretation is that a fresh short-term high may indicate an uptrend.

The document warns that technical signals can be noisy and that a brief price spike may trigger the high condition without indicating durable strength. It provides no backtest, performance figures, or precise definitions for amplitude and the K-line threshold. There is also a mismatch between the prose conditions and the supplied formulas, so the examples do not clearly implement the stated screen as written. The post suggests adding industry, fundamental, or model-based information, but does not test those additions.

Key ideas

• The stated screen combines amplitude, a K-line threshold, and a two-day high condition.
• The examples use a close above the 20-day average and highs above prior highs.
• The written conditions and code examples do not clearly match.
• The post identifies short-term noise and abnormal price spikes as risks, with no performance evidence.

Tags

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