Screening for Rising 30-Day Averages and Converging Moving Averages

Summary

This stock-screening post combines three technical conditions: price amplitude above 1%, at least five overlapping moving averages, and a rising 30-day moving average. It presents average convergence as a way to identify relatively stable prices and the rising 30-day average as a signal of an upward trend. Its revised rule names the 5-, 10-, 20-, 30-, and 60-day averages, but does not give a precise tolerance for when averages count as overlapping.

The article provides an indicator formula and sample data-processing logic, but reports no backtest or trading performance. It cautions that the screen omits fundamentals and broader market conditions, and flags the risk of choosing unsuitable stocks or overfitting. It recommends testing across market environments and considering fundamental inputs or additional indicators. Some implementation details are ambiguous: the amplitude calculation is shown over a data window, and the written screen does not clarify whether the threshold applies to a single day or a longer period. The rule is therefore a screening hypothesis rather than a validated strategy.

Key ideas

• The screen requires amplitude above 1%, at least five overlapping moving averages, and an upward-sloping 30-day average.
• The specified averages are 5, 10, 20, 30, and 60 days.
• The document gives example indicator logic but no evidence of returns or risk-adjusted performance.
• The screen excludes fundamental and broader market information, which may lead to poor selections.
• The overlap threshold and amplitude measurement period are not clearly defined.

Tags

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