A Stock Screen Using Range, Ten-Day Average, and Volume Control

Summary

This post proposes an equity screen using three conditions: prior-session price amplitude above a threshold, the opening price near its ten-day moving average, and a daily volume-based measure described as control above a cutoff. The examples calculate amplitude from the prior session’s high, low, and close; define “near” as within five percent of the ten-day average; and compare current volume with a rolling average of signed volume, where the sign depends on whether the close is above the open.

The author presents the conditions as a way to combine volatility, price stability, and buying pressure. However, the post provides no historical test, performance statistics, or evidence that its volume proxy identifies large buyers or forecasts gains. It also cautions that technical signals can miss broader influences, that narrow filters may exclude other candidates, and that the screen may fail in a falling market. The rule is therefore a screening hypothesis, not a validated trading strategy.

Key ideas

• The screen combines prior-session amplitude, an opening price near the ten-day average, and a volume-based control proxy.
• The example defines proximity to the average as a five-percent band.
• The control proxy compares volume with a rolling average of signed volume.
• The post supplies no backtest or evidence of predictive performance and flags market and model limitations.

Tags

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