A Two-Day High and Price Amplitude Screen for Short-Term Stock Selection

Summary

This post describes a short-term stock selection rule based on price amplitude exceeding a threshold and the session high matching the highest high across two days. It frames the combination as a way to identify stocks with recent movement and possible near-term opportunities. The post also specifies a 2021 time period, then proposes broadening the screen with fundamental and technical inputs and choosing a more appropriate evaluation horizon.

Formula and pseudocode examples show how to calculate amplitude from the session’s high and low relative to the prior close, and how to compare the current high with a two-day rolling high. The examples leave additional factors as placeholders and provide no backtest results or measured evidence of predictive value. The author notes that a short-term, price-only screen may chase market enthusiasm while overlooking intrinsic value, long-term performance, and broader conditions. The selection rule therefore needs clearly defined ranking, timing, and risk controls before it can support a trading decision.

Key ideas

• The screen selects stocks with price amplitude above a threshold and a high equal to the two-day rolling high.
• The post associates the setup with possible short-term opportunities but provides no supporting performance data.
• Example formulas illustrate the amplitude and rolling-high conditions.
• The author warns that short-term price filters can favor recent excitement over long-term business quality.
• Fundamental and technical factors, a suitable evaluation horizon, and risk controls are suggested as additions.

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