Combining High Amplitude, Trading Volume, Gap-Ups, and Revenue Growth in a Stock Screen

Summary

This document outlines a stock screen using four conditions: amplitude above one, current volume above ten thousand lots, an opening price above the prior close, and revenue in 2021 more than 1.1 times revenue in 2018. It presents the combination as a way to identify active stocks with upward price movement and revenue growth. The article includes example screening logic and a Python-style illustration, but gives no backtest, portfolio results, or evidence that the thresholds predict future returns.

The screen mixes market activity and price action with a historical company revenue comparison. The article cautions that financial data may be noisy or inaccurate, market conditions are unpredictable, and single-indicator screens carry risk. It suggests adding measures such as leverage and profit growth, and considering different data windows or a multi-factor approach. The sample implementation also has details that merit review, including how its code represents a gap-up and whether its financial data fields and dates match the stated revenue comparison. These concerns limit how directly the example can be applied.

Key ideas

• The screen combines amplitude, current trading volume, a gap-up opening, and revenue growth over a historical period.
• The stated revenue condition compares 2021 revenue with 2018 revenue using a threshold above 1.1.
• The article provides implementation examples but no evidence of predictive performance.
• Financial data quality and changing market conditions can undermine the selection logic.
• Additional fundamental measures and alternative time windows are suggested but not evaluated.

Tags

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