A Small-Cap Profitable Stock Screen Using Daily Range and Reversal Signals
Summary
The document describes a short-term stock screen combining daily price range, company size, profitability, and a reversal pattern called a bearish-to-bullish “wraparound” or reversal setup. Its proposed criteria include a daily range above one percent, market capitalization below 10 billion yuan, positive net income over recent quarters, and a technical reversal condition. It also suggests considering a rising On-Balance Volume measure as an additional filter.
The text frames the approach as a candidate for further refinement and warns that short-term technical signals can overlook business fundamentals and carry elevated risk. It provides example formula and Python implementations, but does not define the reversal calculation clearly or supply backtest results, execution assumptions, or evidence that the screen is profitable. The code’s interpretation of profitability and its size units should be checked against the intended data fields before use.
Key ideas
- The proposed screen combines a daily range threshold with a market-cap ceiling and positive earnings.
- A short-term reversal condition is used to identify possible rebound candidates.
- Rising On-Balance Volume is suggested as an extra filter.
- The document offers example implementations but provides no performance evidence and leaves some definitions unclear.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.