Screening Stocks by Price Range, Rising Averages, and Volume-Weighted Returns

Summary

The document presents a short-term stock screen combining price amplitude, a rising moving-average condition, and a return measure multiplied by relative trading volume. It interprets larger amplitude as evidence of active price movement, rising averages as a short-term upward trend, and stronger volume alongside positive returns as buying interest. The intended universe is main-board stocks. It also suggests adding longer-term trend indicators, valuation measures, and industry filters to refine the selection.

The article gives example indicator expressions and Python-style pseudocode, but these are not a demonstrated or validated implementation. The example volume calculation is not a direct measure of large-order net flow, despite the strategy description, and the average comparison in the code may not match the stated upward-divergence rule. No backtest, performance results, transaction costs, or risk controls are provided. The article itself cautions that short-term signals can be affected by market cycles and that broad thresholds may select unsuitable stocks, so the screen is best understood as a proposed filter requiring independent testing and additional assessment.

Key ideas

• The proposed screen combines price amplitude, a short-term moving-average condition, and return scaled by relative volume.
• The intended candidates are main-board stocks that show signs of short-term upward movement and trading interest.
• The example implementation uses volume ratios, which do not directly establish large-order net buying.
• The article recommends adding longer-term trend, valuation, and industry criteria.
• It provides no backtest evidence and warns that short-term signals and broad thresholds can produce weak selections.

Tags

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