Screening Stocks by Daily Range, Five-Day Trend, and Prior Limit-Up Status

Summary

This stock screen selects shares whose daily amplitude exceeds a threshold, whose price is above the five-day moving average, and whose prior session was not a limit-up day. The article frames a larger daily range as potentially useful for short-term trading and a price above its moving average as evidence of an upward trend. It includes example formula and Python implementations intended to combine the conditions.

The author warns that reliance on recent price behavior can overfit and overlook business prospects, industry competition, and broader market conditions. The examples should be treated cautiously: the prose says amplitude greater than one, while the formula and Python code use different scales or thresholds, and parts of the limit-up logic may not match the stated condition. The article provides no backtest or performance evidence. It recommends adding fundamental and industry analysis, but does not specify a tested combined method.

Key ideas

• The screen combines a daily amplitude filter with price above the five-day moving average.
• It excludes stocks that reached a limit-up condition in the prior session.
• The author presents the range condition as a short-term selection factor and the moving average as a trend filter.
• The article warns that price-only selection can overfit and miss fundamental or industry changes.
• The examples contain threshold and condition ambiguities, and no performance evidence is supplied.

Tags

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