Screening Stocks with Range, Rounded Price Shape, and Low Price Filters

Summary

This community post describes an equity screening rule combining an amplitude threshold, a rounded price pattern, and a prior closing price below a stated cutoff. It interprets the range and rounded-shape conditions as ways to find stocks with active but comparatively smooth movement, and the low-price filter as a way to focus on cheaper shares. The referenced screening formula also includes a volume-ratio ranking and compares high-low ranges over multiple lookback windows.

The post offers no backtest, performance data, or evidence that these filters predict returns. It acknowledges that price-only screening can overlook company fundamentals and that changing market conditions can alter the selected stocks. Suggested refinements include adding volume and valuation measures, examining a longer chart horizon, and treating price as one factor rather than the sole basis for selection. The stated rationale that lower-priced shares have greater upside is an assertion, not a demonstrated result; the screening conditions should therefore be treated as a hypothesis to evaluate.

Key ideas

• The screen combines an amplitude condition, a rounded price pattern, and a low prior closing price.
• The referenced formula also ranks stocks by a volume-related measure and uses price ranges across several lookback periods.
• The post provides no backtest or evidence that the screening rules forecast returns.
• Price-only filters can miss company fundamentals and can produce changing selections as market conditions shift.
• The author suggests adding volume and valuation measures and considering a longer observation window.

Tags

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