Screening Stocks for Volatility and Recent Limit-Up Moves

Summary

This stock screen combines price movement and recent trading activity. It looks for amplitude above 1, at least one daily gain of 10% or more during the past 25 trading days, and more than two limit-up days within the past 10 days. The document frames these conditions as a way to find active stocks showing short-term upward momentum.

It warns that this screen may chase crowded moves, select a narrow and unrepresentative sample, and overlook company quality, broader market conditions, and limit-down behavior. It suggests adding fundamental measures such as market capitalization and profitability, technical inputs such as volume and candlestick patterns, and market or sector context. The article includes sample indicator logic, but its examples contain placeholders for those proposed additions and do not provide performance evidence or a backtest. The screen is therefore a starting point for research, not a demonstrated standalone strategy.

Key ideas

• The screen combines a recent large daily gain with elevated price amplitude and multiple limit-up days.
• It targets active stocks with short-term upward momentum.
• The document cautions that chasing recent winners can bring frequent losses and weak payoff balance.
• Fundamental measures, volume, candlestick patterns, and market context are proposed as additional filters.
• The article provides example logic but no backtest results.

Tags

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