Screening Stocks by Intraday Range, Rising Averages, and Daily Return

Summary

This stock-selection post proposes screening for shares with an amplitude above 1, an upward-diverging short-term moving-average condition, and a daily return between -5% and 2.6%. The rationale is that a large range reflects activity, rising averages suggest short-term strength, and the bounded daily return may identify shares with potential that have not already made a large move. The post also suggests adding longer-term trend or valuation measures to address omissions in the initial screen.

The article provides indicator logic and illustrative Python snippets, but no backtest results or evidence that the screen predicts returns. Its examples are not fully consistent: the prose describes amplitude above 1, while the code uses a different threshold expression; the moving-average comparison and additional price-to-book and market-cap filters also extend or differ from the stated final screen. The author warns that short-term signals can select long-term decliners or weak businesses, and that restricting daily returns may limit gains. Treat the rules as a rough screen requiring data and implementation checks.

Key ideas

• The proposed screen combines amplitude, a short-term moving-average condition, and a bounded daily return.
• The stated daily return range runs from -5% to 2.6%.
• The post suggests adding longer-term trend or fundamental measures to broaden the assessment.
• The examples contain differences between the prose rules and code filters.
• No performance evidence is provided, and the short-term focus may overlook broader company and trend risks.

Tags

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