A Technical Stock Screen Using Price, Range, and Rising Moving Averages

Summary

The document outlines a stock selection screen combining daily price range, a low share-price cutoff, and rising short-term moving averages. Its example implementation defines the range relative to closing price and requires a three-period average to exceed a five-period average, which in turn must exceed a ten-period average. The intended effect is to select stocks showing price activity alongside a short-term upward alignment of averages. The page also proposes adding other technical and fundamental measures, or using machine learning, as possible extensions.

The document provides formula and Python examples but no backtest, portfolio results, or evidence that the screen is profitable. It warns that the logic relies on technical conditions and can be affected by market shifts, sentiment, and policy events; it also says technical signals do not describe company finances. The prose and code differ in how they define the range calculation, so an implementation should resolve that discrepancy before use. The suggested additions are broad ideas rather than a specified or validated optimization procedure.

Key ideas

• The screen combines price range, a share-price ceiling, and upward ordering of short-term moving averages.
• The examples express the range condition differently, so the intended calculation needs clarification.
• The document offers no backtest evidence for the selection rules.
• Technical screening can miss fundamental information and may perform inconsistently as market conditions change.
• Fundamental measures and additional indicators are suggested, but no validated refinement is provided.

Tags

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