A Short-Term Stock Screen Using Volatility, Moving Averages, and Crossovers

Summary

This post proposes a stock screen combining three conditions: a price range threshold for daily amplitude, the closing price above its five-day moving average, and simultaneous upward crossovers among the ten-, twenty-, and thirty-day moving averages. It presents the amplitude condition as a way to find more volatile stocks, the moving average condition as a trend filter, and the crossovers as a bullish technical signal. Formula and Python examples are included as implementation references.

The post acknowledges that the screen relies on price behavior and technical indicators, so it can miss companies with attractive fundamentals and can produce false signals. It suggests adding other indicators, company financial measures, and macroeconomic context. However, it provides no backtest, performance evidence, or detailed rules for trading and risk control. The examples also differ in how they express the amplitude threshold, and the proposed added filters are not operationally specified, so the screen would need careful validation before use.

Key ideas

• The proposed screen combines daily amplitude, price above a five-day moving average, and aligned moving average crossovers.
• The post interprets amplitude as a volatility filter and moving average conditions as evidence of an upward trend.
• The method uses price and technical data without a defined fundamental analysis or risk management framework.
• The author warns that technical signals can overreact or generate false positives.
• No backtest is presented, and the implementation examples require validation and clarification.

Tags

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