Stock Screening with Price Range, Limit-Up Frequency, and Volume Ratio

Summary

This daily stock screen selects shares with an amplitude above a threshold, at least two limit-up events over a 500-day lookback, and a volume ratio between 1.5 and 6. The article frames amplitude and past limit-up frequency as signs of market activity or attention, while the bounded volume ratio is intended to capture participation without accepting unusually low or high readings. It also supplies formula references and illustrative Python logic for estimating the conditions.

The author notes that amplitude and limit-up history are short-term signals, while volume ratio can respond to funding conditions and broader market context with a delay. Suggested refinements include adding other technical measures and participation indicators. No backtest, universe definition, or performance evidence is provided, and the code's volume-ratio bounds use standard deviation expressions that do not directly match a simple ratio threshold. The formulas and implementation should therefore be checked before use.

Key ideas

• The screen combines price amplitude, a 500-day count of limit-up events, and a bounded volume ratio.
• The article interprets these measures as proxies for volatility, attention, and trading participation.
• It suggests adding indicators such as RSI, MACD, or turnover to broaden the screen.
• The method has no reported performance test, and the illustrative volume-ratio calculation may differ from the stated thresholds.

Tags

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