Equity Screen Using Turnover, 10-Day Average Proximity, and 30-Day Trend

Summary

This stock selection method combines three daily technical conditions: turnover must be between 3% and 12%, the opening price must be within 5% of the 10-day average closing price, and the 30-day average closing price must be rising. The document presents the screen both as a plain-language rule and as example formula and Python implementations.

The approach aims to select shares with active trading and a short-term upward trend, but it provides no performance results or evidence that the conditions predict returns. It considers little about company fundamentals or longer-term behavior, and short-term price moves can change which stocks qualify. The article suggests supplementing the screen with fundamental measures and support or resistance analysis; these additions are recommendations, not tested parts of the strategy.

Key ideas

• The screen requires turnover between 3% and 12%.\nThe opening price must be within 5% of the 10-day average closing price.\nThe 30-day average closing price must rise from the previous period.\nThe method emphasizes short-term technical conditions and largely omits fundamentals.\nThe document provides no backtest results establishing the screen's effectiveness.

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