Screening Stocks by Price Range, Relative Volume, and Book Value

Summary

This document describes a stock screen using a daily high-low range of at least 1%, relative volume between 1.5 and 6 times a five-day average, a share price below 12, and a price-to-book ratio below 3. The stated intent is to find shares with noticeable price movement and elevated but not extreme trading activity, while also applying price and valuation filters. It provides formula and Python examples, but no backtest results or evidence that these conditions predict returns.

The text cautions that a low share price can reflect weak business performance or elevated risk, and that price alone says little about company quality or potential. It recommends incorporating measures such as earnings valuation and leverage, and tailoring rules to different price bands. The example implementation also uses inconsistent range comparisons and data references, so the formulas should be checked against the intended definitions before use.

Key ideas

• The screen combines a daily range threshold with relative volume bounded between 1.5 and 6 times its five-day average.
• It additionally filters for share prices below 12 and price-to-book ratios below 3.
• The document warns that low share prices can reflect business weakness and do not establish value.
• It recommends adding company-quality measures and adapting criteria across price bands.
• The examples are implementation references rather than evidence of strategy performance.

Tags

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