Screening for Active Stocks After a Three-Day Limit-Up Run

Summary

The article proposes screening for active shares using a combination of price range, recent price action, trading volume, and a strong open. Its stated selection logic looks for a daily amplitude above 1%, a three-session limit-up sequence, current volume above 10,000 lots, and an opening price above the previous close. It also recommends positive on-balance volume and provides formula and Python examples.

The article argues that these conditions can identify active stocks with buying interest, but cautions that heavy demand may create unstable price moves and that a high open can be misleading when the broader market is uncertain. It suggests adding volume indicators and market or sector context. The examples do not provide a backtest or performance evidence, and the written description of a three-session limit-up sequence does not clearly match the sample formula’s prior-close comparisons, so implementation details need checking.

Key ideas

• The screen combines daily amplitude, recent price action, volume, and an opening gap above the prior close.
• The stated volume threshold is more than 10,000 lots.
• The suggested refinement adds positive on-balance volume and market or sector context.
• The article warns that high volume and a strong open can still precede unstable or misleading moves.
• The sample formula does not clearly implement the stated three-session limit-up condition.

Tags

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