Combining Moving-Average Confluence, Opening Gains, and Limit-Ups

Summary

This stock-screening post combines three conditions: at least five moving averages are said to converge, the stock’s 9:25 a.m. gain is below six percent, and it has reached the daily price limit at least twice in the previous 500 days. The moving averages listed span five to sixty days. The author frames their convergence as a possible support zone and the limit-up history as evidence of prior sharp upward moves, then suggests adding longer averages or other indicators.

The post provides illustrative Python code, but its calculations do not clearly implement the stated rules: the moving-average test compares only two averages, and a rolling sum of percentage changes does not count limit-up events. It also conflates a pre-open price condition with comparison to a ten-day average. No backtest, performance evidence, or precise definition of average convergence is supplied, so the screen should be treated as an unvalidated example rather than evidence of an effective strategy.

Key ideas

• The proposed screen combines moving-average convergence, a capped pre-open gain, and repeated limit-up events.
• The listed moving-average periods range from five to sixty days.
• The provided code does not faithfully implement several of the described conditions.
• The post reports no backtest or performance results.

Tags

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