A Small-Float Stock Screen Using Range and Price-Position Filters

Summary

The document proposes a Chinese-equity selection screen combining prior-session price amplitude, a maximum free-float share count, and a price-position condition called “reverse covering.” Its examples operationalize that last condition as a close at or below the midpoint of the preceding 60-session low-to-high range. The sample code then intersects the three filters and selects a subset ranked by turnover rate.

The article frames the screen as a way to find volatile, smaller-float stocks trading in the lower part of a recent range, and recommends adding fundamental review, portfolio diversification, and ongoing monitoring. It warns that the price pattern is not a measure of intrinsic value, the float threshold may narrow the universe, and broad-market or industry moves can hurt results. It provides no backtest, return figures, or evidence that the screen predicts a rebound; the code examples also express the amplitude calculation differently, so implementation details should be checked.

Key ideas

• The screen combines a prior-session amplitude filter, a free-float ceiling, and a recent-range price-position condition.
• The sample implementations define the price-position condition using the midpoint of a 60-session range.
• Candidates are ranked by turnover rate after the filters are combined.
• The article cautions that the pattern does not establish fundamental value and that market conditions can undermine the screen.
• No backtest or performance evidence is reported.

Tags

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