A Weekly Moving-Average Crossover Screen for Lower-Priced Stocks

Summary

This screen combines daily price range, a share-price ceiling, and a moving-average crossover. It seeks stocks with amplitude above 1%, a closing price below 20, and a 5-period moving average crossing above a 10-period average. The text describes the crossover as a sign of improving short-term direction and presents the approach as a technical screen for short-term trading.

There is a notable mismatch in the implementation examples: the prose specifies weekly averages, while the formulas use close-based averages without showing how weekly data is formed. The document also gives no backtest, entry or exit rules, or performance evidence. It warns that moving-average crosses lag and that price-only filters omit company fundamentals and broader market conditions. Suggested additions include fundamental and industry checks, other technical indicators, and explicit stop-loss and risk controls.

Key ideas

• The stated screen requires amplitude above 1%, a closing price below 20, and a 5-period average crossing above a 10-period average.
• The crossover is intended to identify improving short-term price direction.
• The prose specifies weekly averages, but the examples do not clearly implement weekly calculations.
• The document notes lag and fundamental-data omissions, and provides no evidence of trading performance.

Tags

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