A Two-Day High and Range Filter for Short-Term Stock Selection

Summary

This stock screen combines three daily price conditions: percentage range above 1, the current high equal to the highest high over the current and prior day, and the current close above the prior day’s low. The document presents these as a way to find volatile stocks showing a short-term upward signal. It gives indicator formulas and a brief selector example, but provides no backtest, performance figures, or evidence that the combination improves selection accuracy.

The stated limitations are its focus on short-term price action, omission of company fundamentals, and exposure to larger swings. The suggested refinements are to consider fundamentals, industry conditions, and market risk, and to use risk controls such as stop-losses. The final description adds a preference for stocks with favorable prospects, without defining how to measure that preference. The screen is therefore a simple technical filter, not a complete entry, exit, or portfolio-management plan.

Key ideas

• The screen requires a daily percentage range above 1 and a high matching the two-day maximum.
• It also requires the current close to exceed the previous day’s low.
• The document frames the conditions as a short-term upward signal among volatile stocks.
• It warns that price-only selection omits fundamental and broader market risks.
• It suggests adding contextual analysis and stop-loss controls, but reports no performance test.

Tags

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