Screening Three-Limit-Up Stocks by Opening Gain and RSI

Summary

This equity-screening proposal looks for stocks with daily amplitude above 1 that had three consecutive limit-up sessions the previous day. It initially caps the 9:25 a.m. gain below 6%; the refined version adds a lower bound of -3% and requires RSI(14) to be at least 50. The article frames the opening-price condition as a way to avoid selecting stocks that have already surged too sharply, while RSI adds a momentum filter.

It supplies formula and Python examples, but no historical test or return evidence. The author notes that a single pre-open price snapshot does not capture the full session, consecutive limit-ups may select short-lived speculative names, and the rules omit fundamentals. The examples also have implementation ambiguities: the code's conditions do not clearly reproduce the stated three-limit-up pattern or the 9:25 gain measure. These criteria therefore need precise data definitions and validation before use.

Key ideas

• The initial screen combines daily amplitude above 1 with three consecutive limit-up sessions on the prior day.
• The refined version bounds the 9:25 a.m. gain between -3% and 6% and requires RSI(14) of at least 50.
• The article gives formula and Python examples but no backtest evidence.
• A pre-open snapshot can miss subsequent intraday price behavior.
• The approach may favor speculative stocks and does not assess company fundamentals.

Tags

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