Screening for High-Amplitude Stocks Crossing a 30-Week Moving Average

Summary

This note proposes screening stocks for daily amplitude above one percent and a price crossing a 30-period moving average during 2021. It interprets the amplitude threshold as a sign of greater price fluctuation and the moving-average crossover as a possible indication that a stock is entering an uptrend. The intended output is a candidate investment pool, not a complete trading system.

The article includes formula and Python examples, but they conflict on the crossover direction: the prose and Python describe price crossing above the average, while the formula appears to test the reverse. The Python example also filters daily data despite describing a 30-week average, leaving the time frame unclear. No backtest or performance evidence is reported. The author cautions that technical conditions omit company fundamentals and broader market direction, and suggests adding valuation or other technical measures. These proposed additions are not evaluated, and the note does not specify portfolio sizing or exits.

Key ideas

• The proposed screen combines daily amplitude above one percent with a moving-average crossover in 2021.
• The article interprets a price move above the 30-period average as a possible trend change.
• The formula, prose, and Python example are inconsistent about crossover direction and timeframe.
• No backtest results are presented to support the strategy.
• Company fundamentals and overall market conditions are identified as omitted considerations.

Tags

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