Volatility, Recent Price Surges, and Weekly Trend Stock Screening

Summary

This post describes a stock screen based on three features: intraday amplitude above one, at least one daily gain of 10% or more during the previous 25 trading days, and a positive weekly trend described as a red histogram. The examples use a volatility measure, a recent return threshold, and a moving-average comparison as proxies for parts of the selection logic. The intended combination is to identify volatile stocks that have shown short-term strength while also meeting a broader trend condition.

The article provides formula and Python sketches, but no backtest results, benchmark comparison, or evidence that the criteria produce profitable trades. Its stated weekly-histogram condition is not consistently represented in the sample implementations, which instead use moving averages or weekly price changes. The post cautions that technical readings involve ambiguity, strict filters can exclude promising stocks, and the screen omits company fundamentals, industry context, and broader market conditions. It suggests incorporating financial and industry data, accounting for macro conditions, and adjusting the thresholds to change the number of candidates.

Key ideas

• The screen combines a daily amplitude threshold with a large daily gain observed within a recent trading window.
• It adds a weekly bullish-trend condition to the volatility and short-term-strength filters.
• The examples use proxies that do not consistently match the stated weekly histogram criterion.
• The post identifies ambiguity, restrictive filtering, and missing fundamental context as limitations.
• No performance evidence is provided for the proposed rules.

Tags

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