A Stock Screen Combining Price Range, Rounded Patterns, and Positive P/E

Summary

This short stock-screening post combines an amplitude threshold, a rounded price pattern, and positive price-to-earnings ratio. Its example formula uses recent high and low ranges over multiple lookback windows to approximate the rounded-shape condition, alongside the amplitude and earnings filters. The author describes the range criterion as a way to seek active but not excessively volatile stocks, the rounded pattern as a calmer price shape, and positive P/E as an indication of profitability.

The post offers a rule sketch rather than a fully specified or evaluated strategy. It provides no backtest, return data, execution rules, or detailed definition of the amplitude scale, so the claimed short-term potential and risk reduction are not established by evidence in the document. It also acknowledges that relying on a single valuation measure or short-term conditions may miss longer-term factors, and suggests adding volume, price, dividend yield, and historical valuation context. The included platform instructions and sample formula do not resolve those testing and implementation gaps.

Key ideas

• The screen combines an amplitude condition, a rounded-price-pattern condition, and positive earnings valuation.
• The rounded-pattern rule compares recent high-low ranges across multiple lookback periods.
• The post proposes the filters as a way to balance trading activity, smoother price movement, and profitability.
• No backtest or performance evidence is supplied, and key rule details are not fully defined.
• The author suggests adding market, volume, and longer-term fundamental information before relying on the screen.

Tags

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