Stock Screen Using Daily Range, Low K Values, and a Pre-Open Gain Limit

Summary

The document presents a stock-selection screen based on three conditions: daily amplitude greater than 1%, a K-line-related value below 20, and a 9:25 a.m. gain below 6%. Its examples define amplitude using the high-low range relative to price and estimate the pre-open condition from the opening price versus the previous close. The explanation interprets the range threshold as selecting more volatile shares and the K value as indicating a lower price position, while the gain cap aims to avoid names that have already risen sharply before the session.

The source suggests supplementing these conditions with fundamental, financial, industry, market, and liquidity checks, and comparing opening moves with broader market conditions. It provides no backtest, trading rules for entries or exits, or evidence that the filters improve results. The exact meaning of the K variable is not explained, and the listed thresholds are acknowledged as subjective, limiting reproducibility and confidence in the selection rationale.

Key ideas

• The screen requires daily amplitude above 1%, a K-related value below 20, and a 9:25 gain below 6%.
• The example measures amplitude from the session high and low relative to price.
• The pre-open gain cap is intended to exclude stocks that have risen sharply before trading.
• The source recommends adding fundamental, industry, market, and liquidity context.
• No backtest is supplied, and the K variable and threshold choices are not fully justified.

Tags

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