Screen Stocks for High Amplitude, Rising Averages, and Positive Daily Returns

Summary

This stock-selection rule combines daily price amplitude above one percent, an upward-spreading moving-average condition, and a positive return for the day. The article presents these as filters for volatility, recent price direction, and current performance. It includes a formula sketch and Python example, with additional market capitalization filtering in the sample implementation.

The document provides no backtest results, candidate list, or trading exits, so readers cannot infer profitability or practical risk. It warns that the screen omits company fundamentals and valuation, and that a daily return can be affected by intraday timing and sharp market moves. It suggests adding volume, relative strength, profitability, valuation, and market capitalization factors. The written rule and example code do not align cleanly: the moving-average calculations and ordering are ambiguous, and the sample imposes extra conditions absent from the stated core rule. These inconsistencies would need resolution before testing.

Key ideas

• The stated screen requires amplitude above one percent, rising moving averages, and a positive daily return.
• The article treats these conditions as proxies for volatility, direction, and current performance.
• No backtest evidence or trade management rules are provided.
• The article flags omitted fundamentals, valuation, and sensitivity to intraday market moves.
• The example code contains conditions beyond the stated rule and leaves the average ordering unclear.

Tags

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