Screening Stocks for Reversal Candles, High Volume, and Positive Sessions

Summary

This Supermind stock screen combines a daily range greater than 1%, a reversal-style candle pattern, trading volume above 10,000 lots, and a positive session in which the close exceeds the open. The article provides indicator-formula and Python examples, including candlestick-pattern functions, to identify stocks satisfying the combined conditions. It frames the added volume and price-direction filters as ways to narrow a technical reversal screen toward stocks showing stronger activity.

The document offers no return history, benchmark comparison, holding rule, or transaction-cost analysis, so it does not establish that the screen is profitable. It warns that a technical-only filter omits company fundamentals and that high volume can have explanations requiring closer investigation. It suggests incorporating valuation measures such as price-to-earnings or price-to-book ratios and adjusting parameters as market conditions change. The examples describe candidate selection rather than a complete entry, exit, and risk-management system.

Key ideas

• The screen requires a daily range above 1%, a reversal pattern, volume above 10,000 lots, and a close above the open.
• Candlestick-pattern and price-volume conditions are combined to produce a candidate stock list.
• The document provides example formulas but no evidence of returns or robustness.
• It identifies missing fundamental analysis and potentially misleading high volume as limitations.
• Valuation measures and adaptive parameter review are suggested as possible additions.

Tags

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