Screening Stocks with Volatility, Recent Gains, and a Two-Day High

Summary

This stock-selection note combines a large daily high-low range, at least one strong up day during the recent trading window, and a high matching the maximum over two days. It presents the screen as a way to find volatile stocks that have shown sharp recent gains and short-term price strength. The article also sketches implementations in screening formulas and Python, but some components for additional technical and fundamental filters remain placeholders.

The author warns that the criteria omit company fundamentals, may favor speculative names, and can miss fundamentally sound stocks after short-term weakness. It also notes that relying on technical signals may fail to reflect the broader market regime. Suggested extensions include momentum oscillators, fundamental data, and regime-aware filters. No backtest results or evidence of predictive performance are supplied, so the proposed screen should be treated as a hypothesis requiring validation.

Key ideas

• The screen looks for high daily ranges, a recent large gain, and a two-day high.
• The stated logic emphasizes short-term price movement and omits fundamental analysis.
• The article identifies speculative-stock bias and sensitivity to market conditions as risks.
• Suggested refinements include additional technical signals, company fundamentals, and market-regime filters.
• The document provides no reported backtest evidence for the screen.

Tags

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