A Stock Screen Combining Range, Two-Day Highs, and Moving Average Crosses

Summary

This stock-selection rule combines three short-term technical conditions: daily amplitude above a threshold, the current high matching the highest high over the current and previous day, and moving-average cross signals. The reference formula defines amplitude as the high-low range relative to the previous close. It uses short, medium, and longer moving averages, requiring their ordering to be bullish as well as upward crossings between the shorter and intermediate averages. The intended screen seeks stocks showing both recent price expansion and signs of upward momentum.

The article gives formula and Python-style examples, but no backtest, sample, benchmark, or performance evidence. Its explanation is internally broad: it describes three indicators crossing, while the formula specifically uses moving-average relationships and two crossings. The screen is technical-only and short-term; the article itself cautions that it omits company fundamentals and macroeconomic context and that focus on brief trends can raise risk. It suggests combining technical signals with broader analysis and risk controls, but does not specify how to do so or how to validate the rule.

Key ideas

• The screen requires daily amplitude above a threshold and a high equal to the two-day maximum.
• It combines moving-average ordering with upward crosses between shorter and longer averages.
• The rule targets short-term upward momentum but is not supported by reported backtest evidence.
• The article flags its reliance on technical signals and recommends broader analysis and risk control.

Tags

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