A Stock Screen Using Daily Range, Turnover, and Candle Shape

Summary

This short screening example selects equities using three daily conditions: a price range above one percent, trading activity above a stated threshold, and a candle whose open is below its high while its close is above its low. The author describes the candle condition as a rounded shape and frames the screen as a way to find stocks with notable short-term movement and a potentially rising profile.

The document provides example formula and Python implementations, but offers no backtest, return series, benchmark, or evidence that the screen predicts future performance. Its turnover condition is described as yesterday’s traded value, while the displayed examples appear to compare volume with the threshold, so the implementation may not match the stated rule. The candle condition itself is broad and does not quantify curvature or confirm an upward trend. The source cautions that relying on this pattern may overlook other relevant information and suggests combining technical, allocation, and fundamental considerations. It also notes that the approach may not suit longer-horizon investors.

Key ideas

• The screen combines a daily range threshold, a trading-activity threshold, and a candle condition based on open, high, and close prices.
• The candle rule is a simple price relationship and does not independently establish a rounded pattern or upward trend.
• The document supplies illustrative formulas but provides no performance test or predictive evidence.
• The stated turnover rule and displayed code may differ because the examples appear to use volume.
• The source recommends considering additional technical, fundamental, and portfolio factors.

Tags

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