A Stock Screen Using Daily Range, Turnover, and the 250-Day Average

Summary

This article describes a technical stock screen requiring a daily range greater than 1, turnover above 2% and below 9%, and the prior close above the 250-day moving average. The range and turnover filters seek active trading, while the long moving average is used to identify stocks whose price is above a long-term trend reference. Formula references and Python examples are included to illustrate the intended selection process.

The document characterizes the combined criteria as potentially usable across market conditions, but supplies no backtest or performance evidence. It warns that the approach is technical-only, may omit fundamental information, and could misread conditions when markets change sharply. It suggests adding market-regime checks, volume, or capital-flow measures and adjusting the screen to the prevailing environment. The sample implementation has apparent data and logic inconsistencies, so its code should not be relied on as a correct implementation without review.

Key ideas

• The screen combines range above 1, turnover between 2% and 9%, and prior close above the 250-day average.
• Turnover and range are intended to capture activity, while the moving average acts as a long-term trend filter.
• The article includes formula and code examples but reports no backtest results.
• The author notes that technical filters can miss fundamentals and changing market regimes.
• The sample code contains apparent inconsistencies that warrant correction before use.

Tags

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