Screening Stocks by Amplitude, Weekly Momentum, and Turnover

Summary

The post describes a stock screen using three conditions: price amplitude above a threshold, a positive weekly bar or momentum reading, and turnover between 2% and 9%. It explains these as a way to seek stocks showing movement and short-term strength while avoiding very low or unusually high trading activity. It also suggests adding valuation, technical, and fund-flow measures as possible refinements.

The page includes example implementations, but their details do not align fully with the stated logic: the code uses a daily MACD reading rather than a weekly red bar, and the amplitude and turnover thresholds appear in differing scales across the examples. No backtest results or evidence of profitability are provided. The post itself cautions that a technical screen omits fundamentals and capital flows, and that selected names may not perform well. The screen should be treated as an illustrative filter requiring consistent definitions and validation.

Key ideas

• The proposed screen combines price amplitude, weekly strength, and a bounded turnover range.
• The author presents turnover as a way to exclude stocks with very low or high activity.
• Suggested refinements include valuation measures, other technical indicators, and fund-flow data.
• The code examples use daily signals and differing threshold scales, so they do not precisely match the written criteria.
• No backtest or trading performance evidence is supplied.

Tags

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