A Stock Screen Combining Turnover, Rising DEA, and the 10-Day Average

Summary

This stock-selection example combines turnover between 3% and 12%, a rising DEA condition, and an opening price near the 10-day moving average. The opening-price band is defined as within 5% above or below that average. The accompanying indicator references describe the DEA condition through moving-average and signal-line comparisons, while the Python sketch uses a DEA-up flag. The screen is presented as a way to find stocks trading near a short-term average with signs of activity and improving momentum.

The post provides formula and Python examples, but it reports no backtest, benchmark, or evidence of returns. It warns that the screen is exposed to market swings and omits fundamentals and other relevant factors. It suggests adapting conditions to industry characteristics and combining technical and fundamental analysis. The examples leave practical details, including validation of the signal definition and the timing of each input, to the user; passing the filter alone does not establish a stock’s quality or a reliable trading edge.

Key ideas

• The screen requires turnover between 3% and 12% and a rising DEA condition.
• It selects stocks opening within 5% of either side of the 10-day moving average.
• The post provides indicator-formula and Python sketches for implementing the filter.
• The examples offer no performance evidence and do not include fundamental analysis.
• The author suggests adapting conditions and adding other technical or fundamental inputs.

Tags

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