Screening Stocks by Daily Decline, Range, and Moving-Average Alignment

Summary

This post presents a technical stock screen combining daily price movement and moving-average conditions. It looks for stocks with an amplitude above 1, a daily percentage change between minus 5% and minus 4%, and at least five moving averages meeting an alignment condition. The stated rationale is to find volatile stocks that have experienced a sizable one-day decline while showing some degree of trend consistency.

The post supplies example indicator logic and a Python sketch for checking stocks, but the implementation is not fully reliable as written: its moving-average test compares closing prices with a single moving-average series rather than clearly verifying that five moving averages overlap. It offers no backtest, performance statistics, or precise definition of amplitude and moving-average convergence. The author notes short-term market risk, possible missed trend starts, and the lack of fundamental analysis, and suggests adding fundamental measures and risk controls. Treat the screen as an idea to define and validate, not as evidence of a profitable strategy.

Key ideas

• The screen combines an amplitude threshold with a daily decline between minus 5% and minus 4%.
• It also requires a condition intended to represent alignment among at least five moving averages.
• The post describes price volatility and trend consistency as the motivations for combining these filters.
• The example implementation does not clearly establish that five distinct moving averages converge.
• No performance results are provided, and the post identifies short-term risk and the absence of fundamental inputs.

Tags

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