Stock Screening by Daily Range, Two-Day High, and Positive P/E

Summary

This stock-selection rule combines three conditions: daily amplitude above 1%, the current high matching the highest high over two days, and a positive price-to-earnings ratio. The document includes brief formula examples for each condition and sketches how they might be combined with additional fundamental and technical filters. It presents the setup as a technical screen with a basic profitability valuation check, and suggests it may suit medium- or longer-term use.

No backtest, sample, or measured return evidence is provided. The article warns that price action and P/E omit other influences, including sentiment and policy, and that P/E comparisons can be difficult across industries. It suggests adding further indicators and tailoring valuation criteria by sector and market conditions, but does not define those thresholds or provide validation for the proposed additions. The examples are illustrative and may require platform-specific implementation.

Key ideas

• The screen selects stocks with amplitude above 1%, a two-day highest high, and positive P/E.
• The document supplies example formulas but no tested performance results.
• P/E varies in usefulness across industries and should be interpreted with other fundamentals.
• The rule omits influences such as market sentiment and policy, and any refinements need validation.

Tags

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