A Stock Screen Using Range, the 10-Day Average, and the 250-Day Trend

Summary

This post describes an equity screen requiring daily amplitude above one percent, an opening price near the 10-day moving average, and the prior closing price above the 250-day moving average. Its rationale combines short-term movement, an opening near a shorter-term average, and a longer-term price trend. The provided examples define “near” as within five percent of the 10-day average and show selecting names that satisfy all three conditions.

The post frames the screen as a way to find stocks for longer-term holding, but supplies no backtest or return evidence. It cautions that the rules omit company financials and broader market conditions, and that volatile markets can cause selected stocks to fall. It recommends adding fundamental measures, considering overall market conditions, and defining risk controls. The rules are technical filters rather than a complete portfolio or execution plan, and the document does not specify how often to rebalance or how to size positions.

Key ideas

• The screen requires amplitude above one percent and an opening price within five percent of the 10-day average.
• It also requires the prior close to exceed the 250-day moving average.
• The rules combine a short-term range condition with a longer-term trend filter.
• The post offers illustrative formulas but no backtest or return evidence.
• It identifies missing fundamentals, market context, and risk controls as limitations.

Tags

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