Screening for High Amplitude, Rising Averages, and Curved Price Trends

Summary

This document describes a stock screen requiring daily amplitude above 1, upward-diverging moving averages, and a price path characterized as arc-shaped. It interprets the shape as a possible rebound after an earlier adjustment. Formula and Python examples attempt to calculate amplitude, moving-average relationships, and a short-window curvature measure, though the formula example does not clearly define a robust arc criterion. The page also includes a market-cap filter in its Python illustration.

The author notes that the arc condition is subjective and that fundamentals such as earnings, valuation, and dividends are omitted. They recommend defining the shape quantitatively, for example through curvature calculations or curve fitting, and adding fundamental criteria. No backtest or performance evidence is supplied, and the code should be treated as an illustrative sketch rather than a validated screening implementation.

Key ideas

• The proposed screen combines amplitude above 1, upward-diverging moving averages, and an arc-like price path.
• The document interprets the shape as a possible rebound pattern but supplies no evidence that it predicts returns.
• It recognizes that the arc condition is subjective and suggests quantifying it with curvature or curve fitting.
• Fundamental measures are omitted, and the examples are presented as references rather than validated implementations.

Tags

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