Skip to content
All library documents

Short-Term Stock Screen Using Amplitude, Two-Day Highs, and Opening Gains

Article SuperMind
Read the original

Summary

This short-term stock-selection idea filters for daily amplitude above 1, a current high equal to the highest high over the current and prior day, and an opening-price change between −2 and 5 relative to the stated settlement price. The author frames the combination as a way to find volatile stocks making a near-term high while opening within a bounded range. Formula and pseudocode examples show how the conditions might be combined.

The note characterizes the approach as high risk and sensitive to market fluctuations. It warns that relying on opening-price movement overlooks company quality and long-term value. Suggested additions include other technical signals, market-activity measures, and fundamental or industry analysis. The text offers no historical test or performance evidence, and the settlement-price reference and opening-change definition may require clarification before implementation.

Key ideas

  • The screen combines amplitude above 1, a two-day highest high, and an opening change bounded between −2 and 5.
  • The author positions the conditions as a short-term volatility and price-strength filter.
  • The note warns that market swings can make the selections unstable and risky.
  • It recommends broader technical and fundamental analysis to add context.
  • No backtest results are provided, and the opening-change formula may need clarification.

Tags

EquitiesVolatilityBreakoutTechnical indicators

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