Combining Price Amplitude, Moving Averages, and Fundamental Stock Filters

Summary

This stock screen combines a price amplitude threshold with a condition described as upward dispersion in the moving averages, then applies configurable company filters. The fundamental criteria can include industry, market capitalization, price to earnings, and price to book; the discussion also suggests considering measures such as return on equity, profit margin, and dividend yield. The stated aim is to pair recent price activity with company characteristics and valuation constraints.

The document offers example screening logic and code, but reports no backtest or measured results. It cautions that narrow company filters can produce incomplete or mistaken judgments and that fundamentals and market conditions change. The provided formula and code also appear to operationalize the moving-average condition differently from the prose, and the amplitude implementation is difficult to reconcile with the stated threshold. These details require clarification and validation before the screen can be relied on.

Key ideas

• The screen combines a price amplitude condition with a short moving-average relationship.
• Company filters can specify industry, market capitalization, price to earnings, and price to book ranges.
• Additional fundamental measures such as profitability and dividend yield may refine the selection.
• Changing company fundamentals and market conditions call for review of the screening criteria.
• The example code and stated rules should be checked for consistency before use.

Tags

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