Stock Screening by Price Amplitude, Low K Indicator, and Positive Return

Summary

This article presents a stock screen that combines daily price amplitude above a stated threshold, a K-line indicator below a stated level, and a positive return. Its formula defines amplitude relative to the previous close, while its sample Python logic filters on amplitude, the K indicator, and positive percentage change, then orders selected stocks by return. The article describes the K condition as identifying stocks at relatively low levels and treats the amplitude filter as a way to focus on more volatile prices.

The examples show how to express the filters, but the article provides no backtest, benchmark, or evidence that the combination predicts future gains. It also notes that using recent returns and technical measures can overemphasize short-term performance and fails to capture company finances, prospects, or broader market conditions. Its proposed refinements include adding technical and financial information and weighing multiple factors together. Those suggestions are not tested, and the screen’s usefulness depends on how its indicators are defined and evaluated in practice.

Key ideas

• The proposed screen requires amplitude above a threshold, a K indicator below a threshold, and positive return.
• Amplitude is calculated relative to the previous close, and selected stocks are ranked by percentage change.
• The article provides example formulas but no backtest or evidence of predictive performance.
• It warns that short-term technical filters omit company finances, prospects, and broader market factors.

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