Screening Stocks After Three Consecutive Limit-Up Sessions

Summary

This short-term stock screen combines three conditions: intraday amplitude greater than one, three consecutive limit-up sessions by the previous day, and a recent price change between minus five percent and plus 2.6 percent. The article presents the filters as a way to identify volatile stocks following a strong price run while restricting the latest move to a specified range. It also suggests favoring companies with improving profits and stable share prices, though it does not define how to measure those qualities.

The document supplies illustrative selection logic but no backtest, sample, or return evidence. It notes that the method ignores fundamentals in its core filters, that volatile prices can lead to losses, and that even selected stocks may fall during a broad market decline. It recommends adding fundamental and technical checks and applying stop-loss and profit-taking rules. The stated thresholds and consecutive limit-up condition describe a speculative momentum screen; they do not establish an expected edge or suitable holding period.

Key ideas

• The screen requires amplitude above one and three consecutive limit-up sessions through the prior day.
• It further restricts the recent price change to a range from minus five percent to plus 2.6 percent.
• The suggested preference for improving profits and stable prices is not operationally defined.
• The article gives no performance evidence and warns that volatility and market declines can cause losses.
• It recommends broader screening and stop-loss and profit-taking controls.

Tags

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