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Screening Stocks for Volatility, Recent Gains, and Three Losing Sessions

Article SuperMind
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Summary

The proposed stock screen combines a large daily range, a session with a gain of at least 10% during the previous 25 trading days, and three consecutive down sessions. The article frames this as a way to find volatile stocks that have shown strong upside and then pulled back. It also suggests adding market flow, longer-term trend, technical, and fundamental inputs, with periodic adjustment of the screening criteria.

The page provides formula sketches for a few conditions and discusses risks: a short lookback may miss the longer trend, market conditions are not fully represented, and volatility may encourage emotional decisions. Its implementation is incomplete: the sample formulas do not fully match the written conditions, and several proposed market and fundamental filters are placeholders. No backtest, selection results, or evidence of profitability is reported.

Key ideas

  • The screen combines a large range, a recent sharp gain, and three consecutive declining sessions.
  • The stated lookback for the sharp gain is 25 trading days.
  • The article recommends adding market, technical, and fundamental context and periodically revising filters.
  • The formula examples are partial and do not fully implement the written rules.
  • The article supplies no backtest or evidence that the screen is profitable.

Tags

EquitiesVolatilityMomentumTechnical indicators

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