Screening for Active Stocks After Three Consecutive Limit-Up Days

Summary

The proposed screen looks for stocks with a daily high-low range greater than one, three consecutive limit-up sessions, and a turnover-based measure between 0.5 and 2. That measure multiplies the prior day's turnover rate by the ratio of current opening-auction volume to the previous day's volume. The article frames these conditions as indicators of activity, sustained price strength, and moderate trading interest.

The post warns that the screen relies on short-term price and volume behavior, omits company fundamentals, and can miss longer-lasting leaders or cyclical stocks. It recommends considering sector conditions, valuation, earnings expectations, investment horizon, and diversification. No backtest or performance evidence is included, and the supplied Python example uses futures-oriented data fields and does not clearly implement all the stated stock conditions. Its definitions and data alignment need verification before the screen can be evaluated.

Key ideas

• The screen combines a range threshold, three consecutive limit-up days, and a bounded turnover-volume calculation.
• The calculation uses the prior day's turnover rate and opening-auction volume relative to prior volume.
• The article identifies short-term focus and missing fundamental analysis as risks.
• It offers no backtest or evidence of returns.
• The example code's data fields do not clearly match the stated stock-screening rules.

Tags

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