Combining Volatility, Share Float, and Moving-Average Crossovers for Stock Selection

Summary

This stock-selection example combines three filters: daily amplitude above 1%, circulating shares no greater than 5.5 billion, and simultaneous bullish crossovers among 5-, 10-, and 20-day moving averages. The article describes calculating amplitude from the prior session’s high, low, and close, then intersecting the filters to identify candidates. It also presents sample implementations and suggests ranking candidates by volume ratio when limiting the selection list.

The post frames the screen as a short-term signal and warns that technical crossovers can reverse, while share size and price action omit company fundamentals and longer-term prospects. It recommends combining technical and fundamental information and using risk controls such as stop-loss and profit-taking rules. No backtest, performance evidence, or precise definition of the stated three-indicator crossover condition is provided, so the example should be treated as an illustrative screening recipe rather than validated strategy.

Key ideas

• The screen requires amplitude above 1%, circulating shares at or below 5.5 billion, and concurrent bullish moving-average crosses.
• The sample uses 5-, 10-, and 20-day moving averages to identify crossover conditions.
• Candidates can be intersected across filters and ranked by volume ratio when the list must be limited.
• The method omits fundamentals and may produce temporary signals that reverse.
• The post recommends combining signals with broader analysis and explicit risk controls.

Tags

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