Screening Stocks by Daily Range, Positive Earnings, and a Rising 30-Day Average

Summary

The document outlines a daily stock screen that requires price range to exceed one percent of the prior close, a positive price-to-earnings ratio, and a rising 30-day moving average. It interprets these conditions as combining recent trading activity, positive earnings, and an upward short-term trend. Formula and Python examples illustrate how the range and moving-average conditions could be calculated, while the example explicitly leaves the earnings check unimplemented.

The document proposes adding indicators, financial analysis, and risk controls such as stop levels, but it does not define those additions or test the screen. It warns that short-term price movements can be noisy and that the limited conditions can overlook company, industry, and other relevant factors. No backtest, comparative evidence, or return results are supplied, so the screen is an introductory rule set rather than a validated strategy.

Key ideas

• The screen requires a daily high-low range above one percent of the previous close, positive P/E, and a rising 30-day moving average.
• The conditions are intended to combine trading activity, profitability, and recent trend direction.
• The code example does not implement the P/E condition, so the screen is incomplete as shown.
• The document suggests adding fundamental checks, other indicators, and risk controls.
• No backtest or performance evidence is provided, and short-term price changes may be noisy.

Tags

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