A Short-Term Stock Screen Using Range, Two-Day Highs, and Volume

Summary

The document proposes a short-term stock screen that selects shares with a daily amplitude above a threshold, a high equal to the highest of the current and prior sessions, and a volume ratio within a specified band relative to a moving average. It presents these conditions as a way to find stocks with notable price movement, recent strength, and active but not extreme trading. It also sketches how the filters could be combined with additional market, industry, and fundamental criteria.

The screen is a heuristic, not a validated strategy: the document offers no backtest, benchmark, execution assumptions, or evidence that the conditions predict returns. It cautions that the approach omits fundamentals and longer-term trends, and that emphasizing activity can overlook other opportunities. The code examples are illustrative and require platform-specific implementation; additional factors and risk controls are suggested but not defined.

Key ideas

• The screen combines a minimum daily price range with a recent two-session high.
• It filters volume using a ratio to a moving average, bounded by lower and upper thresholds.
• The proposed logic targets short-term activity and strength but does not assess long-term value.
• The document recommends adding market, industry, fundamental, and risk filters without specifying them.
• No empirical performance evidence or implementation-ready risk rules are provided.

Tags

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