Stock Screening by Price Range, Float Size, and Candle Position

Summary

This stock selection method combines a prior bar’s percentage amplitude, the number of freely traded shares, and the current close’s position within its high-low range. The stated filters are amplitude above 1, float no greater than 5.5 billion shares, and close-to-range positioning above 0.6. The examples show how to apply the conditions and rank qualifying stocks by turnover, selecting up to one tenth of the dataset.

The document presents the screen as a way to find volatile, smaller-cap stocks for short-term trading, but it provides no backtest results or evidence of profitability. It cautions that chart shapes can be noisy and subjective, and that the proposed close-position calculation is only a rough proxy for a rounded pattern. It suggests adding fundamental filters and defining shape criteria more rigorously. The criteria and ranking depend on data conventions and implementation details, so they would need validation before use.

Key ideas

• The screen requires prior-bar amplitude above 1 and float size at or below 5.5 billion shares.
• It uses the close’s position within the high-low range as a proxy for a rounded price shape.
• The Python example intersects the filters and ranks candidates by turnover.
• The document warns that visual patterns can be noisy and subjective, and it offers no performance evidence.

Tags

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