Screening Stocks by Daily Range, Price Near the 10-Day Average, and Revenue Growth

Summary

This stock screen combines a daily amplitude threshold, an opening price near the 10-day moving average, and revenue growth between 2018 and 2021. The post explains the intended rationale: look for volatile stocks that may be consolidating while showing improved business revenue. It also gives sample implementations in indicator formula syntax and Python, and suggests sorting selected stocks by trading volume.

The post cautions that the screen omits other technical and fundamental factors, and that revenue comparisons can be distorted by seasonality or temporary growth. It proposes considering valuation measures and examining a longer revenue history. The examples have implementation ambiguities: the indicator snippet refers to net profit for the revenue condition, while the Python example sums different years than the stated comparison. No backtest, performance evidence, or trading rules for entries and exits are provided, so the screen is a starting point rather than a validated strategy.

Key ideas

• The screen requires daily amplitude above one, an opening price within five percent of the 10-day average, and revenue growth above the stated threshold.
• Its rationale combines short-term volatility, price consolidation, and business growth.
• The post warns that seasonal effects can make revenue growth misleading.
• The sample code contains inconsistencies between the described revenue test and its implementation.
• No performance results or entry and exit rules are supplied.

Tags

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