A Stock Screen Using Rising Lows and Weekly Moving Average Crossovers
Summary
The document describes a stock selection rule combining three technical conditions: an amplitude threshold, rising bottoms, and a weekly crossover of the five-period moving average above the ten-period average. It presents the rule as a way to identify volatile stocks whose price structure and trend may be improving. It also includes examples of how the conditions might be expressed in a charting platform and Python, though the code is presented as a reference rather than a validated implementation.
No backtest results or performance evidence are supplied. The stated limitation is that the screen relies on price indicators and omits company fundamentals and earnings expectations, which may constrain its usefulness for longer-term investing. The author suggests adding fundamental and technical measures and considering macroeconomic and policy conditions. The document does not specify how amplitude or rising bottoms should be parameterized in general, and its sample code does not establish robustness, transaction costs, or out-of-sample performance. Treat the screen as a hypothesis for research rather than evidence of a profitable strategy.
Key ideas
- The screen combines an amplitude threshold with rising price lows and a weekly moving average crossover.
- The moving average condition looks for the shorter weekly average to cross above the longer one.
- The document frames the rule as a technical stock filter rather than a complete investment process.
- It warns that financial fundamentals and earnings expectations are not included.
- No backtest evidence is provided to establish profitability or robustness.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.