Screening for High-Amplitude Stocks with Reversal Patterns

Summary

This proposed stock screen looks for shares with daily amplitude above 1, a reversal or engulfing-style pattern, and no limit-up move on the previous day. Its intended logic is to find volatile stocks showing a change in recent price direction while filtering out names that had already reached the prior day’s upper price limit. The document gives indicator-formula and Python examples, but the reversal definition and its coding are not clearly aligned, and the sample calculations contain apparent implementation ambiguities.

The page cautions that volatile stocks can amplify broad market moves and that screening around market attention may encourage momentum chasing. It suggests adding other technical or fundamental checks and refining the prior-day limit-up threshold to account for data accuracy. No backtest, performance evidence, or precise operational definition of the reversal signal is provided; the criteria are best understood as a preliminary screening idea.

Key ideas

• The screen requires amplitude above 1, a reversal pattern, and no prior-day limit-up move.
• The document provides formula and Python examples, though the signal definitions and implementations are not fully consistent.
• Volatile candidates can be especially sensitive to market-wide swings and crowded attention.
• Additional indicators and a more carefully specified limit-up threshold are suggested, without supporting test results.

Tags

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