A Stock Screen Combining Price Amplitude, Limit-Up Streaks, and Recent Declines

Summary

This post proposes screening stocks for a large daily trading range, a recent multi-session limit-up streak, and falling closing prices across the preceding trading days. It frames the rule as a technical screen for volatile stocks whose recent price action combines a sharp surge with subsequent weakness. The discussion suggests narrowing candidates to market-hot sectors and considering company fundamentals alongside the price conditions.

The post gives qualitative rationale and risk suggestions, including adding fundamental information, limiting holdings, managing entry and exit timing, and setting stop-loss and profit-taking levels. It supplies no backtest, measured returns, or detailed trading rules. Its illustrative Python snippet also mixes a futures data source and contract with a stock-selection description, and its rolling-price condition is not an explicit test that every close declined sequentially. These inconsistencies make the example difficult to treat as a faithful implementation of the stated screen.

Key ideas

• The proposed screen combines a large price range, a recent limit-up streak, and a multi-day decline in closing prices.
• The post suggests adding fundamental filters and prioritizing stocks in active sectors.
• It recommends controlling holdings and using stop-loss and profit-taking rules, without specifying their values.
• No empirical performance evidence or complete entry and exit plan is supplied.
• The sample implementation uses futures data and does not clearly enforce a strictly consecutive decline.

Tags

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