Combining Moving Average Trend, Lower Lows, and Price Range for Stock Screening

Summary

This equity screen combines three technical conditions: a price amplitude above a threshold, a current low below the previous session’s low, and the 20-day moving average above the 120-day moving average. The long-versus-short average relationship is intended to identify a broader upward trend, while the lower low and amplitude condition describe recent price movement. The post also mentions adding fundamental and industry measures to broaden the selection process.

The document includes formula references and sample Python-style screening logic, but the code’s moving-average crossover check does not directly implement all three stated conditions. No backtest results, trading rules, or evidence of predictive performance are supplied. The explanation acknowledges that technical and trend filters omit company and industry context. A lower low can also reflect continued weakness rather than a rebound, so the conditions need independent validation and clearly specified execution and risk rules before use.

Key ideas

• The screen requires the 20-day average to exceed the 120-day average.
• It also selects for a current low below the prior low and amplitude above a threshold.
• The document proposes adding fundamental and industry information for broader analysis.
• The sample code does not clearly match every stated screening condition, and no results are reported.

Tags

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