Combining Moving-Average Alignment and Limit-Up History in a Stock Screen

Summary

This post proposes screening for stocks with at least five overlapping moving averages, upward-diverging averages on the current day, and at least two limit-up sessions within 500 days. It frames aligned averages as a sign that short- and long-term trends may be converging, upward divergence as evidence of improving momentum, and past limit-ups as a record of strong rallies. Its suggested extensions include valuation measures and indicators such as MACD and RSI.

The post warns that a trend-focused screen can miss other kinds of stocks, overlook short-term timing opportunities, and fail to predict future prices. It provides only a partial code example: the moving-average helper functions begin, but the implementation is cut off before showing how overlap, divergence, or limit-up counts are calculated. The final proposed screen adds fundamental and technical filters without specifying thresholds. No backtest or performance evidence is included, so the conditions remain a qualitative screening idea rather than a tested trading system.

Key ideas

• The proposed screen combines moving-average overlap, upward divergence, and past limit-up frequency.
• The post interprets those conditions as signs of aligned trends and prior strong price moves.
• It suggests adding valuation measures and other technical indicators.
• The code excerpt is incomplete and does not define how its main conditions are measured.
• The post gives no backtest evidence and notes that trend screens may miss opportunities or lose money.

Tags

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