A Stock Screen Combining Amplitude and Moving Averages

Summary

This post describes an equity screening rule that combines recent price amplitude with two moving-average conditions. It selects stocks whose amplitude exceeds a stated threshold, whose opening price lies within a narrow band around the ten-day moving average, and whose closing price is above the five-day moving average. The author interprets the amplitude filter as a way to find active shares, the opening-price condition as a possible sign of consolidation, and the short moving-average condition as evidence of an upward trend. Example implementations are provided for two screening environments, and one version sorts qualifying stocks by trading volume.

The post frames the screen as suitable for medium- to long-term investment, but provides no performance results or validation. It cautions that technical filters omit company fundamentals and can select unstable stocks after unusual price moves. Suggested refinements include adding fundamental measures and stronger risk controls. The stated thresholds and moving-average rules are presented as a screening recipe, not as evidence of a reliable standalone strategy.

Key ideas

• The screen combines an amplitude threshold with opening-price proximity to a ten-day average.
• It also requires the closing price to exceed the five-day moving average.
• One implementation ranks qualifying stocks by trading volume.
• The post gives no backtest evidence and warns that the technical filters omit fundamentals and risk controls.

Tags

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