Screening Main-Board Stocks Near the 10-Day Average After a Gain

Summary

This post proposes screening main-board shares with turnover rates between 3% and 12%, a daily gain above 1%, and an opening price near the 10-day moving average. Its example defines “near” as within 3% of that average. The rationale is to find short-term opportunities while avoiding extremely active shares, though the post does not explain why the turnover band or proximity threshold should predict returns. Its indicator and Python examples also include other conditions, such as volume, trend ordering among moving averages, and exchange or ST-status checks.

The post warns that stocks rising sharply may reverse or become volatile and that proximity to a moving average does not establish the likely direction or risk of future prices. It suggests adding other technical and valuation measures. No backtest, results, or validation procedure is reported, and the code snippets contain conditions beyond the headline strategy, so their exact correspondence is unclear.

Key ideas

• The core screen combines a 3%–12% turnover rate, a daily gain above 1%, main-board membership, and an opening price near the 10-day average.
• The Python example treats proximity as within 3% of the moving average.
• The snippets introduce additional filters that are not all included in the stated rule.
• The post notes reversal and volatility risks and does not provide performance evidence.

Tags

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