Screening Stocks for Rising Lows, Daily Range, and Recent Gains

Summary

This stock-selection post describes a screen combining a daily amplitude threshold, rising bottoms, and a positive but capped gain over the preceding ten days. It presents formula and Python examples intended to express those conditions, then suggests adding liquidity, business growth, valuation, or industry measures and reviewing candidates in a second pass. The idea is to combine a price-range condition with a pattern of improving lows and recent positive performance.

The post offers no backtest, portfolio results, or evidence that the screen predicts returns. It itself cautions that amplitude can be affected by market capitalization and float, and that a short-term return measure can be noisy or omit relevant stocks. The examples should be treated as illustrative: the Python section uses a high-price standard deviation as a proxy for amplitude and uses a particular ordering of historical closes, so its calculations may not match the stated screen without careful date and formula checks.

Key ideas

• The proposed screen requires daily amplitude above a threshold, rising bottoms, and a positive ten-day gain below a cap.
• The post provides both a charting-platform formula and a Python sketch for implementing selection conditions.
• It recommends adding liquidity, fundamental, and industry information and reviewing selected names.
• No backtest evidence is given, and the post identifies noise and amplitude-related selection bias as risks.
• The Python sketch may not implement the stated measures exactly and requires validation.

Tags

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