Stock Screening by Price Range, Limit-Up History, and Trading Heat

Summary

This stock-selection concept combines a daily price-range condition with a history of repeated limit-up moves, then ranks qualifying shares by a turnover-based heat measure. The description says to keep stocks whose amplitude exceeds one and that have recorded at least two limit-up events within a 500-day lookback, then prioritize the most heavily ranked by heat. It defines heat using volume, total shares, and closing price, and gives a reference implementation that selects the top 20.

The proposed rationale is that historical sharp moves and current attention may help surface actively watched names. The article also cautions that high attention may mean expectations and risk are already reflected in prices, and suggests adding industry and fundamental measures. No performance results or validation are provided. The accompanying Python example's calculations and field assumptions may not faithfully implement the prose conditions, so the screen would need data-definition checks and backtesting before use.

Key ideas

• The screen combines a daily amplitude threshold with repeated limit-up events over a 500-day window.
• Qualifying stocks are ranked by a volume-based heat formula using capitalization and closing price.
• The reference ranking selects up to 20 names with the highest heat values.
• The author notes that attention can reflect priced-in expectations and recommends broader evaluation.
• No evidence of profitability is presented, and the example implementation needs verification.

Tags

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