Screening for Three-Day Limit-Up Stocks at a Two-Day High

Summary

This post describes a stock-selection filter requiring price amplitude above a threshold, three consecutive limit-up sessions through the previous day, and a current high equal to the highest high across a two-day window. It interprets the filters as a way to find volatile, actively traded stocks that remain near recent highs, reflecting market attention and trader sentiment.

The author warns that the screen ignores longer-term business fundamentals, may generate false signals, and can encourage chasing prices. Suggested additions include industry and company analysis, other technical indicators, and capital-flow measures. The post provides example indicator logic and code, but no backtest results or measured risk and return. Its sample implementation also mixes stock-selection language with futures-related code, making the specification and instruments unclear; the screen is best read as an illustrative rule set requiring validation.

Key ideas

• The screen combines elevated amplitude, three consecutive prior limit-up sessions, and a high matching the two-day maximum.
• The post treats the pattern as a sign of volatility and market attention, not proof of future gains.
• It recommends adding fundamental, industry, technical, and capital-flow analysis.
• No backtest evidence is supplied, and the example implementation leaves instrument details unclear.

Tags

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