Stock Screen Combining Range, Morning Star Pattern, and Control Metric

Summary

This post describes a technical stock screen requiring daily amplitude above a threshold, a morning-star candlestick condition, and a platform metric labeled today’s control above a threshold. It characterizes the metric as a measure related to a stock’s share of daily trading volume and treats high amplitude and the candle pattern as signs of possible upside opportunity. The post includes indicator-formula and Python examples, though the code’s candle rules are an approximation and do not establish that it reliably identifies the named pattern.

The author warns that the screen excludes company fundamentals and industry trends, and that a small set of technical conditions may select imprecise candidates. Suggested refinements include adding liquidity, market capitalization, price, and fundamental or industry information. No backtest results or measured performance are reported. The post’s claim that the candidates may have substantial upside is a hypothesis, while volatile stocks and ambiguous pattern or control-metric definitions can make the screen difficult to reproduce and risky to trade.

Key ideas

• The proposed screen combines a minimum price range, a morning-star pattern, and a high platform-defined control metric.
• The post interprets larger ranges and the candlestick pattern as possible signs of upside potential.
• Its sample code approximates candle conditions and does not validate the pattern’s predictive value.
• The author notes that technical-only selection omits company fundamentals and industry context.
• No performance test is supplied, so the proposed screen remains unvalidated.

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