Screening for Volatility, Three-Day Gains, and a Weekly Moving-Average Crossover

Summary

This stock screen combines a daily price-range threshold, a recent three-session winning streak, and a bullish weekly moving-average crossover. The article’s original description refers to stocks that had three consecutive limit-up sessions on the prior day, while its proposed revision instead specifies three consecutive up days. It also discusses a weekly five-period moving average crossing above the ten-period average. These are momentum and trend criteria intended to identify active, strong-moving shares.

The text gives no backtest or performance evidence, and its sample Python logic is only a reference implementation. The example uses futures data and weekly bars, so it does not clearly implement the intended stock screen or its daily volatility and limit-up conditions. The author notes risks from ignoring company fundamentals, short-lived signals, and speculative rallies that can reverse sharply. Suggested additions include fundamental filters, attention to sector and market trends, and risk controls.

Key ideas

• The proposed screen combines a price-range threshold with a recent three-session advance and a weekly moving-average crossover.
• The initial description calls for three consecutive limit-up sessions, while the proposed revision calls for three consecutive rising sessions.
• The article provides example logic but no performance results or validated backtest.
• The code example uses futures data and weekly bars, which may not match the described stock-selection rules.
• The author flags fundamental, signal-timing, speculation, and downside risks.

Tags

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