Screening Stocks by Moving-Average Confluence, Price, and Revenue Growth

Summary

This post describes a stock screen that combines at least five overlapping moving averages, a share price below a stated ceiling, and revenue growth between two fiscal years. The intended rationale is to find stocks with clustered trend measures and a history of revenue expansion. The article also recommends considering growth potential, widening the search across markets, and using more data to assess company value rather than relying on a few simple conditions.

The screen is presented as a selection concept, not a tested strategy. The headline and opening summary differ on the revenue-growth threshold, and the code example does not actually implement the stated screening conditions; it computes moving averages and revenue changes instead. The post warns that the screen may emphasize short-term performance, miss growing firms without convergent averages, and create sector or company concentration. It offers no backtest, valuation analysis, or evidence that the selected conditions predict returns.

Key ideas

• The proposed screen combines clustered moving averages, a share-price limit, and revenue growth across two years.
• The post flags possible short-term bias, missed opportunities, and concentrated holdings.
• The stated revenue threshold varies within the document, and its code example does not implement the full screen.
• The strategy is not supported by backtest results or evidence of predictive performance.

Tags

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