Screening Stocks by Positive Earnings, Trading Range, and Moving Averages

Summary

This stock-selection article proposes screening for amplitude above 1%, positive price-to-earnings ratio, and a 20-day moving average above the 120-day moving average. It interprets the amplitude condition as indicating trading activity, positive earnings as a basic profitability filter, and the moving-average relationship as a possible sign of an established uptrend. A Python example sketches calculations for rolling averages and price range, though it does not show a complete, validated data workflow.

The article warns that two moving averages provide a limited view, long averages can lag, and short averages may react to sharp price moves. It recommends considering additional technical, fundamental, and industry information and adapting the averages to market conditions. No backtest, measured performance, or validation is presented, so the screen should be read as a proposed set of filters rather than evidence of future gains.

Key ideas

• The proposed screen requires amplitude above 1%, positive PE, and the 20-day average above the 120-day average.
• The moving-average relationship is presented as a possible indicator of an uptrend.
• The article supplies an illustrative Python example but reports no backtest or performance evidence.
• The author notes that moving averages can lag or be distorted by sharp price changes.
• Additional technical, fundamental, and industry factors are suggested as possible filters.

Tags

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