Stock Screening with Reversal, Intraday Gain, and Range Filters

Summary

This post presents an equity screening rule using three conditions: daily price range must exceed a threshold, a reversal or engulfing pattern must appear, and the indicated 9:25 price gain must remain below a ceiling. It offers formula and Python examples for combining range and pattern signals with a price filter, then suggests adding industry, capital flow, and company financial measures to broaden the selection process.

The post provides no backtest, return data, or evidence that the screen improves performance. Its description of the reversal condition and the code’s price and time references may not align cleanly, so the implementation should be checked against the intended market data and session convention. The author also cautions that technical filters alone omit industry and broader market conditions. This is best treated as a screening concept to validate, rather than an established strategy.

Key ideas

• The screen combines a minimum price range with a reversal pattern and a cap on the indicated early session gain.
• The post gives formula and Python examples for applying the conditions to stocks.
• It recommends adding industry, capital flow, and company financial information to the screening process.
• No performance test is reported, and the signal definitions and data timing require verification.

Tags

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