Combining Price Amplitude, Moving Average Crossovers, and Market Capitalization

Summary

This stock-screening proposal selects shares using three conditions: price amplitude above a threshold, multiple moving-average crossovers occurring together, and a minimum float market capitalization. The rationale is to combine recent price movement, a possible trend change, and a size or liquidity filter. The accompanying example describes ranking the selected stocks by trading activity, though it does not provide a clear, internally consistent definition for every condition.

The post offers no backtest or performance evidence and flags reliance on technical indicators as a limitation. Its example code and formula references also appear inconsistent: the amplitude threshold and market-capitalization units are not clearly reconciled, and the code’s moving-average crossover logic may not match the stated three-line crossover rule. The author suggests adding fundamental and industry information, but the screening criteria should be precisely defined and validated before use. The selection rule is therefore a strategy concept, not an established source of returns.

Key ideas

• The proposed screen combines price amplitude, simultaneous moving-average crossovers, and a minimum float market capitalization.
• The rationale is to use price movement and trend signals alongside a size filter.
• The example includes ranking selected stocks by trading activity.
• The post provides no evidence of backtested performance, and some formulas and units are unclear.
• The author suggests supplementing technical filters with fundamental and industry analysis.

Tags

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