Screen Stocks by Volume Ratio and Rising 30-Day Moving Average

Summary

This stock selection idea ranks shares by volume ratio and retains the top 100, then filters for stocks listed for more than 30 days whose 30-day moving average is rising. The intended rationale is to combine unusually high recent trading activity with a short-term upward trend, while excluding very newly listed shares whose history may be limited.

The document warns that volume ratio reflects short-term activity and that a 30-day average says little about longer trends. It suggests supplementing the screen with indicators such as MACD or RSI and with market capitalization and industry information. The article offers no backtest, performance evidence, or detailed entry and exit rules. Its stated volume-ratio formula is daily volume divided by the average over the prior five days; the displayed moving-average formula appears inconsistent with a 30-day average, so implementation should be checked before use.

Key ideas

• Rank stocks by volume ratio and select the top 100 before applying trend filters.
• Require a listing history longer than 30 days and a rising 30-day moving average.
• Volume ratio and a short moving average capture short-term conditions, not long-term fundamentals.
• The article recommends broader indicators and company or industry factors, but provides no test results.
• The displayed moving-average calculation does not match the stated 30-day window and needs verification.

Tags

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