Screening Stocks by Recent Returns, Trading Activity, and Gap-Up Opens

Summary

This stock-screening proposal selects shares with an amplitude above a threshold, current volume above 10,000 lots, an opening price above the previous close, and a positive but capped return over ten days. It frames these filters as a way to find active stocks with potential for continued gains. The post includes example indicator and Python implementations, although the displayed formulas and code do not consistently express every stated condition in the same way.

The document reports no backtest or performance evidence. It cautions that the screen focuses on trading activity and recent price changes while overlooking company fundamentals, industry conditions, policy shifts, and overall market risk. It recommends adding financial and market context before using the results. The screen is therefore a short-term selection idea with acknowledged limitations, rather than a validated investment strategy.

Key ideas

• The proposed screen combines recent positive returns, elevated trading activity, price amplitude, and a gap-up open.
• The ten-day return filter excludes stocks with negative or excessively large gains.
• The example implementations do not fully align with all the prose conditions.
• No backtest results are supplied to establish that the screen predicts returns.
• The post recommends adding fundamental, industry, and market-risk filters.

Tags

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