Rising Lows and Bollinger Band Breakout Stock Screen

Summary

This document describes a technical stock screen that combines amplitude above 1, rising lows, and a close above both the upper Bollinger Band and its middle line. The stated rationale is to identify stocks with recent price strength and a possible continuation signal. It provides indicator formulas and sample Python logic, including a rising-low test based on three observations.

The article does not report a backtest, sample period results, or evidence that the criteria predict future returns. It notes that Bollinger Bands lag and depend on their lookback window, and that a short-term technical screen can overlook company fundamentals and expose users to market fluctuations. The proposed improvements include adding business growth, earnings stability, cash position, and longer-term indicators. These are suggestions rather than implemented or evaluated parts of the screen, and the code is explicitly presented as a reference requiring adaptation.

Key ideas

• The screen requires amplitude above 1, rising lows, and a close above the upper and middle Bollinger lines.
• The rising-lows condition is illustrated using the most recent three low prices.
• The article describes the setup as a short- to medium-term technical selection method.
• It provides formulas and sample code but no performance results or validation.
• The author identifies indicator lag and omitted fundamentals as limitations.

Tags

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