Equity Screen Using Range, 10-Day Average, and a Lower Low

Summary

This stock screen combines three daily price conditions: amplitude greater than 1%, an opening price within 5% of the 10-day moving average, and a current low below the previous day's low. The document includes formula and Python examples for calculating these conditions and intersecting the resulting stock sets. It frames the filters as a way to find volatile stocks opening near a short-term average while making a lower low.

The post supplies no backtest results or evidence that the combination improves returns. It warns that high-amplitude stocks may carry greater risk, that the screen omits company fundamentals, and that one day's low is too limited to establish a trend. Suggested refinements include volume, market capitalization, dividend yield, additional technical indicators, and historical testing. The rules are a simple candidate filter, not a complete trading or risk-management process.

Key ideas

• The screen requires daily amplitude above 1% and an open within 5% of the 10-day moving average.
• A qualifying stock must also make a low below the prior day's low.
• The supplied examples calculate the three filters and combine their results.
• The screen has no reported performance evidence and ignores company fundamentals.
• The document recommends adding other market data and testing parameters on historical data.

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