Short-Term Stock Screening with High Amplitude, Volume, Gap-Ups, and Reversals

Summary

This short-term stock screen selects shares with amplitude above one, current volume above 10,000 lots, a higher open, and a reversal pattern described as an engulfing move. The post treats amplitude and volume as signs of active trading, the higher open as a possible bullish signal, and the reversal pattern as a potential source of short-term opportunity. It offers formula and Python sketches to illustrate screening, but reports no backtest or performance evidence.

The article notes that the rules leave out financial data, industry conditions, and broader market risk. It also says the reversal condition can be interpreted subjectively and that the approach carries elevated risk because it focuses on short-term trading. Suggested refinements include adding company fundamentals, sector and market context, and further technical analysis such as moving averages. The examples are not fully consistent with the prose, particularly in how volume and the reversal pattern are represented, so the operational definitions would need clarification before evaluation.

Key ideas

• The proposed screen combines amplitude, current volume, a higher open, and a reversal pattern.
• The article interprets high amplitude and volume as signs of trading activity, not proof of future gains.
• It warns that subjective reversal definitions and omitted market or company factors create risk.
• The post suggests adding fundamental, sector, market, and technical context.
• The code examples do not fully align with the written criteria, and no backtest is reported.

Tags

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