A Stock Screen Using Daily Range, the 10-Day Average, and Positive Returns

Summary

This stock-selection idea combines three daily price conditions: amplitude above 1, an opening price near the 10-day moving average, and a return above zero. The post interprets a larger range as evidence of trading activity, an open near the moving average as relative price stability, and a positive return as a possible opportunity. It also recommends considering industry, market style, macro conditions, fundamentals, and liquidity, and mentions longer moving-average windows as alternatives.

The article includes formula and Python examples, but no backtest results or evidence that the filters produce persistent returns. Its description leaves “near” loosely defined, while the example operationalizes it as within five percent of the average. The sample return calculation and use of prior versus current prices may also create timing ambiguity. The author acknowledges that past behavior may not persist and that both the chosen indicators and their windows are uncertain.

Key ideas

• The screen requires amplitude above 1, an open near the 10-day moving average, and a positive return.
• The example defines proximity to the moving average as within five percent.
• The post suggests considering industry, market style, macro conditions, fundamentals, and liquidity.
• It gives no backtest evidence and cautions that historical patterns may not persist.
• The sample calculations leave some ambiguity about return timing.

Tags

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