Equity Screening with Recent Price Spikes and a Rising DEA Indicator

Summary

This post describes a stock-selection screen based on three conditions: daily amplitude above one percent, at least one daily gain of ten percent or more within the past 25 trading days, and a rising DEA indicator. It frames the rules as a quick way to identify volatile stocks with recent strong movement and improving indicator readings. Example formula and Python snippets sketch how to represent the conditions using price data, an ATR-based range test, and a DEA comparison.

The author notes that the screen relies on simple technical signals and recent price action, omitting longer-term fundamentals and other indicators. It recommends considering additional technical measures, business quality, market conditions, and adaptive weighting. The document does not provide a backtest or results, and the code examples are incomplete placeholders for additional filters, so the screen is a starting point rather than a validated trading strategy.

Key ideas

• The proposed screen combines a high-amplitude condition, a recent large daily gain, and a rising DEA reading.
• The examples express the filters using rolling price data and a comparison of current and prior DEA values.
• The author warns that short-term technical filters omit fundamentals and may be sensitive to market swings.
• Additional indicators and business or market context are suggested, but no empirical validation is shown.

Tags

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