Stock Screening with Price Range, Reversal Patterns, and Company Quality

Summary

This proposed equity screen combines a price-range threshold, a reversal or engulfing-style pattern, and a company-quality filter. The document suggests assessing company quality through market position, management, industry outlook, and financial condition, then combining those measures into a score. Formula and Python examples are offered as sketches of how the filters might be assembled.

The examples are incomplete and internally inconsistent: the company-quality data and scoring functions are undefined, and the formula's reversal test is not clearly equivalent to the named candlestick pattern. The post gives no backtest or evidence of predictive value. It acknowledges subjectivity and data-quality risks in the company filter, and notes that emphasizing range and reversal signals may exclude fundamentally strong but less volatile stocks. It recommends making the quality measures more explicit and potentially adding valuation measures, though no validated ranking method is established.

Key ideas

• The screen combines a range threshold, a reversal-pattern condition, and a company-quality assessment.
• Suggested quality dimensions include market position, management, industry outlook, and financial condition.
• The sample formulas and code are illustrative and leave key functions and data definitions unresolved.
• The document identifies subjectivity and data quality as risks in company assessment.
• No performance testing or evidence of predictive value is reported.

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