Screening Stocks by Range, Recent Limit-Up Activity, and Prior Low

Summary

This post proposes a technical stock screen combining daily price range, a recent sequence described as three consecutive limit-up sessions, and a close above the previous day’s low. It presents the conditions as a way to find volatile stocks that may be approaching an upward move. The article gives formula and Python examples, but supplies no backtest, sample trades, or evidence that the combination forecasts breakouts.

The implementation deserves careful review. The formula’s sequence of comparisons does not clearly establish three limit-up sessions, and the Python illustration uses futures-market data despite describing a stock-selection rule. It also measures range differently from the written threshold. The post acknowledges that the screen ignores fundamentals and broader market conditions, and suggests adding those inputs and other indicators. The stated logic is therefore best treated as an unvalidated screening idea; the definitions, market universe, and signal timing need to be reconciled before testing or trading it.

Key ideas

• The proposed screen combines a daily range threshold, recent consecutive limit-up activity, and a close above the previous low.
• The post frames the conditions as a possible way to identify volatile stocks nearing an upward move.
• The formula and Python example do not clearly implement the same rule, and the Python example uses futures data.
• The author notes that the screen omits fundamentals and broader market context.
• No backtest or performance evidence is provided.

Tags

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