A Stock Screen Combining High Amplitude, Rising Lows, and Weekly Strength

Summary

The post proposes a stock selection rule combining price amplitude above a stated threshold, progressively rising bottom levels, and a bullish weekly bar. It characterizes these as technical signals for price movement and buying interest, then suggests adding volume or moving-average conditions and using stop-loss and take-profit rules to improve risk control.

It provides a sample indicator formula and partial Python pseudocode, but key definitions are missing or unclear: the weekly period is a placeholder, the bottom-level comparison may not implement the intended sequence, and the Python amplitude calculation uses the standard deviation of highs rather than an explicitly defined amplitude measure. No backtest results or evidence of predictive performance are supplied. The post also notes that news and other unusual events can undermine the signals, so the screen should be treated as an unvalidated idea requiring precise implementation and testing.

Key ideas

• The proposed screen combines amplitude, rising bottom levels, and a bullish weekly signal.
• The post suggests adding volume or moving-average filters to refine stock selection.
• It recommends stop-loss and take-profit rules as risk controls.
• The sample formula and Python sketch leave important definitions incomplete or inconsistent.
• No performance results are provided, and adverse news can invalidate the technical signals.

Tags

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