Stock Screening with Daily Range, Reversal Patterns, and Low Concentration

Summary

This equity screen combines three filters: daily high-to-low range above 1%, a reversal or engulfing-style pattern, and a concentration measure below 20%. Formula and Python examples illustrate how the conditions might be combined to produce a candidate list. The article describes the approach as selecting shares with notable price movement, a possible reversal signal, and limited concentration.

The document offers no performance results or validation of the signal. It warns that the concentration measure may differ across data providers and calculation methods, which can change the selected stocks. The filters may also exclude companies with attractive growth prospects because of their concentration readings. It recommends considering industry context, liquidity, and financial health alongside the indicators. The examples should be treated as implementation sketches: the prose, formulas, and code do not fully establish a consistent definition of the reversal pattern or concentration input.

Key ideas

• The screen requires a daily high-to-low range greater than 1 percent.
• It pairs the range filter with a reversal-pattern condition and concentration below 20 percent.
• Different definitions and sources for concentration can produce different screening results.
• The article gives no evidence that the combined conditions generate profitable trades.
• Industry context, liquidity, and financial health are suggested as additional checks.

Tags

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