Screening Stocks by Price Range, Moving Averages, and Bollinger Bands

Summary

This stock screen combines three technical conditions: daily amplitude above a stated threshold, a relationship between the closing price and recent five-day average values intended to represent upward movement, and a close between the middle and upper Bollinger Bands. The article gives formula and Python examples for applying the filters to stocks, including a market and market-capitalization selection in the sample implementation. Together, the conditions seek stocks showing both price movement and strength relative to their recent range.

The document offers no backtest, return series, or comparison with a benchmark. It cautions that the screen omits fundamentals and broader market risk, and that short-term amplitude can make selections appear stronger than they are. The written description and code should be interpreted carefully: the formula and implementation do not align perfectly in how they define the average-price condition or Bollinger position. The example therefore needs validation and precise rule definitions before use in research or trading.

Key ideas

• The screen combines an amplitude threshold, a moving-average condition, and a Bollinger Band location filter.
• The intended Bollinger condition places the close between the middle and upper bands.
• The article includes sample screening logic but reports no historical performance results.
• It warns that short-term price measures and omitted fundamentals or market risks can weaken the screen.
• The prose, formula, and code contain differences that should be reconciled before implementation.

Tags

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