Screening Stocks for Amplitude, a Rounded Price Pattern, and Weekly Strength

Summary

This document presents a stock-selection idea combining daily amplitude above one percent, a rounded price shape, and a positive weekly bar. It describes amplitude as a way to find more active stocks, the rounded shape as a smoother pattern, and weekly strength as a possible sign of an upward trend. An example formula operationalizes the pattern using recent highs and lows, moving averages, and price thresholds. No Python implementation is included, and no backtest findings or measured outcomes are reported.

The author notes that defining a rounded shape can be subjective and that a positive weekly bar is only one technical signal. Suggested improvements include incorporating fundamental and market-environment measures and assessing the rules against historical data; machine learning is also mentioned as a possible optimization approach. The example thresholds are not justified with evidence, so the screen should be treated as a hypothesis requiring clear definitions and independent testing rather than as an established low-risk strategy.

Key ideas

• The proposed screen combines daily amplitude, a rounded price pattern, and weekly strength.
• The example formula uses recent price ranges and moving-average conditions to represent the setup.
• The document gives no backtest results or measured strategy performance.
• Rounded-pattern identification can be subjective, and a positive weekly bar is not sufficient evidence by itself.
• The author suggests adding fundamental and market context and evaluating the rules on historical data.

Tags

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