A Stock Screen for Rising Lows and Two-Day Highs

Summary

The document outlines an equity screening rule that looks for stocks with amplitude above one, rising bottoms, and a high equal to the highest level across two days. It adds a trend filter requiring the close to remain above its 60-day simple moving average, with a close below that average presented as an exit condition. The post includes sample formula and Python implementations, though their rolling-window logic is not fully explained.

The accompanying rationale is that rising lows and a recent high may identify stocks showing upward momentum. It warns that broad market declines can weaken the screen and that technical criteria omit fundamental influences. Suggested refinements include adding other technical or fundamental variables, but the document provides no backtest results, definitions for every condition, or evidence that the screen improves returns. The stated rationale should therefore be treated as a hypothesis rather than a demonstrated edge.

Key ideas

• The screen combines amplitude above one, rising bottoms, and a two-day high condition.
• A 60-day moving average serves as both a trend filter and a stated stop condition.
• The post argues that the price pattern may find stocks with upward momentum.
• Market-wide weakness and omitted fundamental factors are identified as limitations.
• No performance results are provided to validate the proposed screening logic.

Tags

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