A Short-Term Stock Screen Using Range, Turnover, and Rising Averages

Summary

This stock-selection method looks for shares with a daily high-low range above 1, turnover between 2% and 9%, and a rising five-day moving average over several consecutive observations. The combination uses price range and turnover as proxies for market activity, while the sequence of higher five-day averages is intended to identify the start of a strong upward move. The article frames the approach as a technical screen aimed at short-term opportunities.

It includes indicator logic and a Python example, but does not provide backtest results or clarify how signals translate into entries, exits, and position sizes. The example's turnover calculation uses volume relative to total shares, which may not match standard turnover definitions. The article warns that omitting company fundamentals can overlook financial, governance, and sector risks; volatile or unclear markets may also lead to frequent trading and higher costs. It suggests combining the screen with fundamental measures and stronger risk and position controls.

Key ideas

• The screen requires a daily high-low range greater than 1 and turnover between 2% and 9%.
• A sequence of rising five-day moving averages represents the intended upward-trend signal.
• The method is purely technical and does not assess company fundamentals.
• The article gives code examples but no backtest evidence, and it warns about trading costs and concentrated risk.

Tags

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