Stock Screening with Turnover, Low Stochastic K, and Price Amplitude

Summary

This proposed stock screen selects shares with turnover between 3% and 12%, a stochastic K value below 20, and price amplitude above 1. The accompanying rationale treats low K as a sign that a stock is at a relatively low level, while turnover and amplitude are intended to identify active, volatile shares with scope for price movement. The article includes example screening logic and Python-style code using turnover data, stochastic calculations, and a range-based amplitude measure.

The method is a technical filter rather than a complete trading system: it does not define an exit, holding period, or position sizing rule. The article cautions that focusing on indicators can overlook company fundamentals and that volatility itself carries risk. It recommends considering broader market direction, sector conditions, and industry research, and reassessing stocks when circumstances change. No historical test, comparison, or performance results are supplied, so the suggestion that the filters improve signal quality is not supported by evidence in the document.

Key ideas

• The screen requires turnover between 3% and 12%, stochastic K below 20, and amplitude above 1.
• The stated rationale links low K with a relatively low price level and uses turnover and amplitude as activity filters.
• The article advises considering market, sector, and industry conditions alongside the indicators.
• It does not specify exits, holding periods, or position sizing.
• No backtest or performance evidence is reported.

Tags

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