Screening Stocks for Wide Ranges, Large Gains, and Recent Limit-Ups

Summary

This document presents a short-term stock screen based on three conditions: a wide daily range, at least one daily gain of 10% or more in the recent 25 trading sessions, and a limit-up event within the past month. It explains these as signs of recent volatility and strong price movement, then provides reference implementations in indicator-formula syntax and Python. The examples aim to combine the conditions into a selector for candidate stocks.

The author cautions that a recent limit-up does not establish long-term investment value, and that strong short-term moves can reverse. Strict criteria may also exclude stocks with longer-term potential. Suggested improvements include adding fundamental and industry data and evaluating candidates with a broader set of short- and long-term measures. The document gives no performance results, and its sample formulas should be checked against the stated screening windows and data conventions before use.

Key ideas

• The screen combines a wide daily range, a large recent daily gain, and a recent limit-up event.
• The document provides formula and Python examples for combining the screening conditions.
• A limit-up event is a short-term signal and does not establish a stock’s long-term value.
• The screen may select stocks exposed to sharp reversals or omit candidates under stricter filters.
• The author suggests adding fundamental and industry information to the selection process.

Tags

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