Screening Stocks for Wide Ranges and a Reversal Pattern

Summary

This post outlines a daily stock screen combining a price-range threshold, a closing price of 18.5 yuan, and a reversal pattern. The pattern is defined as a close below the prior close while the day's high exceeds the previous day's high. The author provides indicator and Python examples, with candidates sorted by trading value, and frames the setup as a way to find stocks showing both intraday movement and a change in price behavior.

The post notes that this combination can still miss relevant market conditions or produce false signals, and that focusing on range and reversal alone may neglect other useful information. It suggests supplementing the screen with moving averages, volume, company fundamentals, macro conditions, and industry analysis, along with take-profit and stop-loss rules. No backtest results or evidence of predictive performance are given. The written description and code also contain implementation ambiguities, including whether the range threshold is strictly greater than one percent and how the fixed price condition should be interpreted.

Key ideas

• The screen combines a daily range above one percent, a close at 18.5 yuan, and a reversal condition.
• The reversal condition requires a lower close than the previous day alongside a higher daily high.
• The author recommends combining price signals with volume, fundamentals, and broader market analysis.
• The post provides no performance evaluation, and some details in the described rule and examples are ambiguous.

Tags

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