Filtering Stocks by Price Range Shape and Prior-Day Limit-Ups

Summary

This brief stock-screening idea selects shares with an amplitude greater than 1, a rounded price pattern, and no limit-up close on the previous day. The post suggests that the amplitude filter seeks stocks with movement, the rounded shape favors a gentler pattern, and excluding prior-day limit-ups may avoid stocks affected by a sharp burst of attention. It recommends considering fundamentals and market-risk or sentiment measures alongside technical conditions.

The article supplies no precise definition of the rounded pattern, screening implementation, backtest, or performance evidence. It also notes a tradeoff: excluding prior-day limit-up stocks could omit shares that continue to rise. The proposal is therefore a qualitative filter rather than a validated trading strategy, and the meanings of amplitude and price shape would need to be operationalized before testing.

Key ideas

• The proposed screen combines price amplitude, a rounded chart pattern, and exclusion of shares that hit the daily limit-up the previous day.
• The article presents the filters as ways to seek movement while avoiding recently sharp price rises.
• It recommends supplementing technical criteria with fundamental and market-risk information.
• The rounded pattern is undefined, and no implementation details or performance tests are provided.

Tags

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