A Short-Term Stock Screen Using Range Expansion and Rising Moving Averages

Summary

This technical stock screen combines three conditions: daily price range exceeding 1% of the previous close, the session high matching the highest high of the current and prior day, and rising 5-, 10-, and 20-day moving averages. Together, these rules seek shares showing an expanded range, a recent local high, and upward movement across several short-term trend measures. The document positions the idea for short-term trading.

The source provides formulas and illustrative pseudocode, but no backtest, performance statistics, or evidence that the filters identify profitable opportunities. It acknowledges that the approach relies mainly on technical data and may miss market sentiment, policy developments, and fundamental information. It suggests adding sentiment, volume, or fundamental measures, though it does not define or test those additions. The screening conditions alone do not specify entry timing, exits, position sizing, or risk controls.

Key ideas

• The screen requires a daily range greater than 1% of the previous close.
• It looks for a session high equal to the highest high across two days.
• It requires the 5-, 10-, and 20-day moving averages to rise.
• The document provides no performance evidence and leaves trade execution and risk controls unspecified.
• The author notes that technical filters omit sentiment, policy, and fundamental information.

Tags

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