Screening Stocks by Price, Range, and a Rising 30-Day Average

Summary

This stock screen combines three conditions: a minimum price-range measure, a closing price below a specified ceiling, and a 30-day moving average that is rising. The document frames the range and price conditions as filters for stocks with a particular price and movement profile, while the moving-average condition is intended to favor a positive longer-term direction. It includes formula-style and Python-style examples for calculating the range, rolling average, and selection conditions.

The article warns that the rule ignores company fundamentals and can still select stocks that fall when the broader market is declining. It suggests adding other technical indicators or fundamental data, but presents no tests of those alternatives. No performance results or evidence of predictive value are given. There is also a material inconsistency: the prose says amplitude must be greater than one, while the Python example compares it with one and the formula reference uses a different threshold expression. The range denominator and implementation notation also vary. These ambiguities should be settled before reproducing or evaluating the screen.

Key ideas

• The proposed screen combines a price-range threshold, a closing-price ceiling, and a rising 30-day moving average.
• The moving-average condition is intended to favor stocks with an upward intermediate-term trend.
• The document warns that the rule ignores fundamentals and may not protect against a falling overall market.
• Formula and Python-style examples are included, but their range thresholds and calculations are inconsistent.
• The document reports no backtest or evidence that the screen produces profitable selections.

Tags

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