Equity Screening with Triple Moving Average Crossovers and Recent Limit-Ups

Summary

This stock screen combines an amplitude threshold with simultaneous crossovers among three moving-average pairs and at least one limit-up event during roughly the prior month. It is presented as a way to find shares showing strong recent movement and potential short-term momentum. The article gives indicator-formula and Python-style examples, but the examples leave parameters or functions platform-dependent and do not establish a tested trading system.

The author flags overfitting and the possibility that a small number of limit-up events may not represent broader market direction. News or policy shocks can also influence recent limit-ups. Suggested improvements include adding fundamental, market, and sector information and using portfolio construction to reduce dependence on this narrow signal set. No performance evidence is provided, and the screen's thresholds and crossover definitions would need validation on suitable historical data before use.

Key ideas

• The screen requires amplitude above a threshold, multiple moving-average crossovers, and a recent limit-up event.
• It is intended to identify stocks with strong short-term price behavior.
• Recent limit-ups can reflect exceptional news or policy events rather than persistent strength.
• The article warns that narrow screening rules may overfit and recommends adding broader market, sector, or fundamental inputs.

Tags

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