A Stock Screen for Rising Momentum and Early Uptrends
Summary
This stock selection method combines three technical conditions: daily price range above 1%, a positive but less than 35% gain over ten days, and a signal that the stock may be starting a stronger upward move. The sample formula defines that last condition as a crossover in which the rolling 12-day low reaches or exceeds the rolling 24-day low after previously being below it. The accompanying Python example also sorts qualifying stocks by order imbalance, though the main screening logic does not explain or justify that ranking choice.
The article presents the screen as a way to find stocks with some recent strength without selecting those that have already risen too far. It warns that the method omits company fundamentals, that the uptrend signal is subjective, and that trend following may lead to aggressive entries or missed opportunities. No backtest results or evidence of performance are provided. Suggested improvements include adding fundamental filters and position controls; machine learning is mentioned as a possible way to classify the signal, without implementation details.
Key ideas
- The screen requires a daily high-to-low range above 1% and a positive ten-day return below 35%.\nIts uptrend-start condition uses a crossover between rolling 12-day and 24-day price lows.\nThe article characterizes recent gains as a way to find momentum without selecting stocks it considers overextended.\nThe method lacks fundamental analysis and does not provide backtest evidence or performance results.\nPosition sizing and additional company research are suggested as possible risk controls.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.