Equity Screening with Volatility, Five-Day Average, and Two-Day High

Summary

This document describes a short-term equity screen combining three price conditions: amplitude above 1, closing price above its five-day moving average, and a high matching the highest level over two days. It presents the conditions as a way to find volatile stocks that may be stable relative to their recent average and showing short-term upward movement. It also gives example implementations for screening stocks and suggests combining the signals with other technical and fundamental factors.

The article provides no backtest, performance figures, or evidence that the screen predicts returns. Its stated caveat is that a recent high can precede a sharp decline, and selected stocks may be speculative. The code examples should be treated cautiously: the amplitude thresholds differ between examples, and some comparisons do not clearly align with the written conditions. The screen is therefore a simple candidate-selection rule, not a complete trading system; it does not specify entries, exits, or position sizing.

Key ideas

• The screen selects stocks with amplitude above 1, price above the five-day moving average, and a two-day high.
• The article frames the conditions as signs of volatility, relative stability, and possible short-term upward movement.
• It recommends considering other technical and fundamental factors alongside the screen.
• A recent high can be followed by a sharp decline, and the document supplies no performance evidence.

Tags

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