Screening Low-Priced Stocks with Moving Average Crossovers and Amplitude

Summary

This stock screening approach combines a price amplitude filter, a low share price cutoff, and an aligned moving average signal. The described crossover condition uses three moving averages in sequence; the accompanying example instead checks whether short, medium, and longer averages are ordered upward, alongside amplitude above one percent. It then selects stocks priced below 12 and sorts qualifying names by price.

The document recommends considering company fundamentals, industry conditions, governance, and growth prospects alongside the technical screen. It warns that a low share price alone does not establish value and may reflect weak fundamentals or other risks. No historical test, returns, or risk statistics are provided, so the screen is a selection recipe rather than evidence of an effective strategy. The example also leaves moving average periods as parameters and does not fully resolve the difference between a simultaneous crossover and simply ordered averages.

Key ideas

• The screen combines price amplitude, moving average alignment, and a share price below 12.
• The prose describes successive moving average crossovers, while the example checks an upward ordering of three averages.
• The document advises adding fundamental, industry, and governance analysis to the technical conditions.
• It provides no backtest or performance evidence, and a low share price does not by itself imply value.

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