Screening Stocks by Amplitude, Control Changes, and Price Above the Five-Day Average

Summary

This stock-selection rule combines three conditions: daily amplitude above a threshold, an absolute change in a control or ownership measure above a threshold, and the current price above its five-day moving average. The article describes amplitude and the control measure as signals about volatility and capital or ownership activity, while the moving-average comparison is intended to capture price strength. It includes example formula and Python implementations, including a final sort by recent price change.

The source recommends checking data quality and adapting the criteria to market and industry conditions, but it reports no backtest or measured results. The exact meaning and scaling of the control measure may depend on the data provider, and the examples use differing threshold representations. The rule also lacks explicit portfolio sizing, exits, transaction-cost assumptions, and risk controls, so it should be treated as a screening recipe rather than a fully specified strategy.

Key ideas

• The screen combines amplitude, a control or ownership-change measure, and price relative to a five-day average.
• The implementation examples also sort selected stocks by recent price change.
• The article advises reviewing data quality and adapting conditions to market context.
• No backtest, transaction-cost model, or portfolio risk method is provided.

Tags

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