Equity Screening for Range Expansion, Recent Gains, Volume, and Gaps

Summary

This short-term equity screen combines a large daily range, a recent strong up day, elevated current volume, and an opening price above the prior close. The stated lookback is 25 trading days for the strong-gain condition. The article describes the combination as a way to find active stocks with recent upward movement, and provides formula-style and Python-style examples. The examples also introduce an ATR comparison, rank by a heat measure, and leave a fundamental-data condition as a placeholder, so the exact operational screen is not fully specified.

The article warns that the conditions may be too restrictive, depend heavily on short-term trading activity, and react slowly when market trends change. It recommends adding fundamental information, using representative measures, and revisiting thresholds as conditions evolve. No backtest or evidence of returns is included; the screen is a proposed filter, not a demonstrated strategy.

Key ideas

• The screen combines daily range, a recent large gain, current volume, and a positive opening gap.
• The strong-gain condition uses a 25-trading-day lookback.
• The examples use an ATR-based range check and include an unspecified fundamental-data filter.
• Restrictive short-term conditions can produce a narrow stock universe and may lag changing markets.
• The document provides no performance evidence and recommends flexible, periodically reviewed criteria.

Tags

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