Screening for High-Amplitude Stocks Near a Two-Day High After a Sharp Intraday Drop

Summary

This stock screen looks for daily amplitude above 1%, a current high matching the highest high over two sessions, and an intraday low that is 4% to 5% below the previous close. The post interprets the combination as selecting volatile stocks that have reached a short-term high but experienced a substantial pullback during the day. It provides formulas for each condition and example logic for applying additional filters such as earnings growth, valuation, and relative strength.

The document offers no backtest or performance data, and its interpretation does not establish that a sharp intraday decline near a recent high predicts a rebound. It notes that selected stocks may continue falling and that the initial rules omit financial condition and profitability. The proposed fundamental and technical filters are illustrative additions rather than validated parts of the screen; their example thresholds are not supported by reported testing.

Key ideas

• The screen requires daily amplitude above 1% and a high equal to the two-session maximum.\nIt also requires the session low to be 4% to 5% below the previous close.\nExample additions include earnings growth, valuation, and relative-strength filters.\nThe post gives no performance evidence and warns that selected stocks may continue to decline.\nThe suggested combined filters are examples, not results of a reported validation.

Tags

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