A Stock Screen Combining Daily Range, Recent Highs, and a Five-Day Average

Summary

This short screening note describes a technical filter for equities. It selects stocks whose daily high-low range exceeds one percent of the previous close, whose current high matches the highest high over the current and prior day, and whose close is above its five-day moving average. Together, these conditions look for active trading, a very recent price high, and price strength relative to a short moving average.

The document gives indicator formulas and a brief rationale, but provides no historical test, benchmark, trading rules for entries or exits, transaction cost estimates, or performance evidence. It also acknowledges that the screen omits company fundamentals and valuation, and may be sensitive to market sentiment and technical indicator behavior. The suggestion to add fundamental, industry, and macroeconomic considerations is general rather than a specified method. The screen can define candidates for further research, but the text does not show that the conditions produce a profitable strategy or identify how selected stocks should be sized or managed.

Key ideas

• The screen requires a daily high-low range greater than one percent of the previous close.
• It selects stocks whose high equals the maximum high across the current and prior day.
• It requires the close to be above the five-day moving average.
• The note provides no backtest or evidence that the screening conditions predict profitable trades.
• The screen omits fundamental and valuation analysis and may be affected by market sentiment.

Tags

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