A Stock Screen Combining Recent Gains, Limit-Ups, and Valuation

Summary

This stock-selection idea combines three short-term conditions: daily amplitude above a threshold, at least one limit-up event during the past month, and a positive ten-day return below an upper bound. The article’s proposed refinement adds a PEG ceiling, then ranks qualifying stocks by PEG and selects a fixed-size subset. It also defines amplitude using the day’s high-low range relative to the previous close and describes querying historical stock data to apply the conditions.

The rationale is to find active stocks with recent positive performance while adding a growth-valuation screen. The article cautions that technical filters may overlook fundamentals and market conditions, that short-term return chasing can neglect risk and longer-term results, and that frequent turnover can raise costs. It offers general suggestions to incorporate broader context, valuation, and lower trading frequency. No backtest results or evidence of outperformance are presented, and the screening thresholds and data implementation would need validation for the market, period, and execution assumptions in use.

Key ideas

• The screen selects stocks by daily amplitude, a recent limit-up event, and a positive but capped ten-day return.
• A proposed refinement adds a PEG filter and ranks eligible stocks from lower to higher PEG.
• The article defines amplitude relative to the previous close and describes applying filters to historical stock data.
• The method may omit fundamental and market-regime information and can encourage costly turnover.
• No performance evidence is provided, so the criteria require testing before use.

Tags

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