Combining Moving-Average Convergence, a Price-Gain Cap, and Dividend History
Summary
This proposed equity screen combines three filters: at least five moving averages are said to converge, the stated 9:25 price gain must remain below a threshold, and the company must have had a high dividend payout ratio in 2019. The post presents convergence as a sign of price stability and the dividend condition as a way to favor companies with substantial distributions. It includes sample logic that checks several moving-average periods alongside price and dividend data.
No historical results or validation are provided, and the post acknowledges that the screen omits broader financial and industry analysis. The code equates moving averages exactly, an unusually strict interpretation of convergence, and its price and dividend calculations may not match the stated timing and payout concepts. These definitions would need clarification before implementation; the historical dividend year also limits how the condition applies to current screening.
Key ideas
- The proposed screen combines moving-average convergence, a capped stated pre-open gain, and a historical dividend threshold.
- The author treats moving-average clustering as a stability signal and dividends as an income-related filter.
- No backtest or evidence of predictive performance is reported.
- The exact-equality test for moving averages and the timing of the price calculation may not match the intended conditions.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.