Screening for Volatile Stocks Pulling Back Above the Five-Day Average

Summary

This short-term stock screen looks for three conditions: price amplitude above the stated threshold, the stock’s average price above its five-day moving average, and an intraday low-to-reference-price decline between four and five percent. The intended setup combines recent volatility and a price pullback with a broader near-term trend filter. The article includes example formula and data-processing logic for identifying candidates.

The rationale is that a stock above its short moving average may retain upward momentum despite a modest retreat, while elevated amplitude may offer short-term trading opportunities. The document provides no backtest, trade rules for entries or exits, or performance evidence. It warns that a selected stock can continue falling and that the screen ignores long-term company value and changing market conditions. It proposes adding valuation, earnings, and industry information and applying risk controls, but does not specify how to combine those inputs or validate them.

Key ideas

• The screen combines elevated price amplitude, price above the five-day moving average, and a four-to-five-percent intraday decline.
• The setup treats a pullback above a short moving average as a possible short-term opportunity.
• The article provides screening examples but no backtest or performance evidence.
• A qualifying stock may continue falling, and the screen omits company fundamentals and broader market conditions.
• Suggested improvements include fundamental filters and explicit risk controls.

Tags

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