Stock Screening by Price Amplitude, Trading Value, and Positive PE

Summary

This stock screen requires price amplitude above 1, prior-day trading value above 60 million, and a PE ratio above zero. It combines a short-term measure of price movement and market activity with a basic valuation filter. The document provides formulas for amplitude and PE, plus a Python illustration for combining the conditions.

The article does not report backtest results or evidence that the criteria improve returns. It cautions that amplitude and trading activity are short-term measures that can respond to market fluctuations, while a positive PE alone does not capture broader financial health or future prospects. It suggests considering additional fundamentals such as price-to-book, return on equity, or earnings per share, and weighting technical and fundamental criteria. The example is a screening illustration; it does not define portfolio construction, entry and exit rules, or risk controls.

Key ideas

• The screen requires amplitude above 1, prior-day trading value above 60 million, and positive PE.
• The method combines short-term activity measures with a basic valuation condition.
• The document gives formulas and illustrative code but no performance evaluation.
• It notes the limits of short-term measures and recommends broader fundamental analysis.

Tags

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