Screening for Volatile, Active Stocks Opening Near the 10-Day Average

Summary

This note presents a stock screen for shares with daily amplitude above 1%, an opening price near the 10-day moving average, current volume above 10,000 lots, and a high open. The example formulas define “near” as within 5% of the average and identify a high open by requiring the open to equal the session high. Together, these filters target actively traded stocks showing price movement and early demand.

The article explains these criteria as signs of volatility, market attention, and possible short-term strength, while warning that high volume and opening enthusiasm can fade or reverse. It also flags the risks of chasing popular names and losses in unfavorable conditions. The article offers formula and Python examples but provides no backtest or outcome data. Some implementation details use prior-period values for amplitude and volume, and the text's interpretation of the moving-average filter as stability does not establish predictive value. Fundamental analysis and limiting the number of selections are proposed as ways to refine the screen.

Key ideas

• The screen combines amplitude above 1%, an open within 5% of the 10-day average, volume above 10,000 lots, and an open equal to the high.\nThe rules aim to find volatile, actively traded shares with early buying interest.\nThe article warns that volume and high opens can reverse and that hot-stock chasing can cause losses.\nCode examples are provided, but no historical performance evidence is reported.

Tags

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