A Stock Screen Using Moving-Average Clustering, Bollinger Bands, and Recent Gains

Summary

This stock screen combines price location among several moving averages, a Bollinger-band position, and a recent-gain constraint. The described filters use five averages spanning short to longer horizons, place the close between the band’s upper and middle values, and require a positive but capped return over ten days. The document defines that gain using the current close relative to the period low, rather than a conventional close-to-close return.

The rationale is to find stocks with clustered average-price levels and some upward movement, while limiting the extent of recent gains. The article includes example selection logic but no backtest, performance evidence, or results. Its code and prose do not align cleanly: the stated condition that the close lies between the upper and middle band values conflicts with the example’s inequality ordering, and the claimed five-average condition is not fully represented in the example. It notes that broad filters can admit volatile names or miss candidates and advises combining them with other technical and fundamental analysis.

Key ideas

• The described screen combines moving-average positioning, Bollinger-band location, and a capped ten-day gain.
• The gain calculation compares the current close with the period low rather than using a conventional close-to-close return.
• The example logic does not consistently match the prose, including the ordering of Bollinger-band values.
• No backtest or performance evidence is provided.
• The author advises adding other technical and fundamental checks to address the screen’s breadth and volatility risks.

Tags

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