Stock Screening with Price Range, Recent Gains, and a Rounded Pattern

Summary

This stock-selection approach combines three technical filters: a large daily high-low range, at least one strong daily gain during the recent lookback window, and a rounded price-chart pattern. The article’s stated rationale is to find volatile stocks with recent upward movement and a potentially favorable chart shape. Its example formula approximates the range condition using average true range, checks a single-day return threshold, and uses an arc indicator for the shape filter; selected stocks are then ranked by volume.

The article cautions that the filters may conflict, that chart-shape judgments can be subjective, and that the method omits longer-term value and fundamentals. It suggests adding valuation measures and automating pattern detection, but provides no backtest, universe definition, transaction-cost assumptions, or evidence of returns. The example Python includes unfinished functions, and the formula’s implementation details do not fully specify how the recent lookback condition is enforced.

Key ideas

• The screen combines daily range, a large one-day gain within a recent window, and a rounded chart pattern.
• Its example ranks qualifying stocks by trading volume.
• The article identifies subjective pattern assessment and missing fundamental analysis as limitations.
• No backtest or return evidence is presented, and some example functions are incomplete.

Tags

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