Combining Price Amplitude, a Morning Star Pattern, and Weekly MA Crossovers

Summary

This document describes a short-term stock screen combining price amplitude above a threshold, a morning star candlestick pattern, and a weekly five-period moving average crossing above a ten-period average. It explains amplitude as a measure of price movement and the moving-average crossover as a signal of short-term direction. The article also offers indicator and Python examples for applying parts of the screen.

The method is presented as a technical trading idea, with no performance results or backtest evidence. The article warns that technical conditions can overlook company fundamentals and valuation, and that restrictive filters may select volatile stocks. It recommends adding fundamental and industry analysis, but does not specify a complete standardized method for doing so. The provided examples may not cleanly implement every named condition, so the screen would need careful definition and validation before use.

Key ideas

• The screen combines price amplitude, a morning star pattern, and a weekly moving-average crossover.
• The five-period weekly average crossing above the ten-period average is used as a directional signal.
• The article frames the approach as suitable for short-term speculation rather than a fully tested investment strategy.
• It cautions that technical filters omit fundamental and valuation considerations and may select volatile shares.
• The examples do not establish strategy performance or fully define every screening condition.

Tags

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