Screening Stocks by Amplitude, Float Size, and the 10-Day Moving Average

Summary

This post proposes a short-term stock screen combining volatility, share float, and the opening price's proximity to a 10-day moving average. It selects stocks with amplitude above 1, a circulating share count no greater than 5.5 billion, and an opening price within about five percent of the 10-day average. The accompanying examples also rank qualifying stocks by turnover and take a subset, though this ranking step is not central to the stated conditions. The article does not provide backtest results or evidence that the filters predict returns.

The author frames the criteria as a way to find volatile, relatively smaller stocks whose opening price is near a short-term trend reference. Risks include noise in short-horizon signals, missing fundamental and industry information, and treating proximity to a moving average as evidence of momentum. Suggested improvements include adding financial and technical factors, using adjusted prices, and considering longer horizons. The rules leave important implementation choices, such as the precise amplitude observation and ranking procedure, insufficiently specified.

Key ideas

• The screen requires amplitude above 1 and a circulating share count at or below 5.5 billion.
• It selects openings within roughly five percent of the 10-day moving average.
• The examples additionally rank candidates by turnover and select a subset.
• The post warns that short-term technical filters can be noisy and omit fundamental risks.
• No measured strategy performance is reported.

Tags

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