Limit-Up Stocks with High Range and an Opening Price Near the 20-Day Average

Summary

This stock-selection rule looks for securities with a daily price range above a threshold, three consecutive limit-up closes on the previous day, and an opening price near a moving average. The article revises its initial description: the final version uses a range above 1.5%, a 20-day average, and an opening price between that average and 5% above it. It provides formula and Python examples intended to identify candidates.

The stated rationale is to combine strong recent price action with volatility and an opening level near the trend measure. The article notes that an unclear range definition, an unsuitable moving-average period, and the gap between opening and actual execution prices can cause false or missed selections. No backtest results or evidence of predictive performance are supplied. The examples also differ from the prose in their treatment of limit-up sequences and price range, so users would need to verify the precise conditions before evaluating the screen.

Key ideas

• The final screen uses a daily range above 1.5%, three consecutive limit-up closes, and an opening price near the 20-day average.
• The opening price condition places the open from the average up to 5% above it.
• The article identifies ambiguity in range measurement and limitations of using the open as an execution proxy.
• The sample implementations do not fully align with the written rules, and no performance evidence is given.

Tags

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