Screening Stocks by Range, Reversal Candles, and Beverage Industry

Summary

This document proposes a stock screen combining three conditions: daily high-to-low range above one percent, a reversal or engulfing-style candle pattern, and membership in a beverage and alcohol import-export industry category. It gives illustrative formula and Python-style implementations, then suggests ranking selected stocks by heat or popularity. The screen is presented as a selection filter rather than a complete portfolio or trading system; it does not define position sizing, entry timing beyond the pattern, exits, or risk controls.

The accompanying discussion argues that the rules combine volatility, price behavior, and an industry characteristic. It cautions that the limited indicators may produce imperfect selections and that companies in the industry can be affected by policy and international trade. It suggests adding valuation measures or studying industry and policy trends. No historical test, selected-stock list, or performance results are supplied, and the sample code's candle logic and industry label would need verification before use.

Key ideas

• The proposed screen requires a high-to-low price range greater than one percent.
• It combines the range filter with a reversal-style candle condition and an industry classification.
• The examples rank qualifying stocks by a heat or popularity measure.
• The document warns that limited technical and industry inputs may produce flawed selections.
• It provides no backtest evidence or complete rules for entries, exits, and risk management.

Tags

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