Screening Stocks by Range, Five-Day Trend, and Turnover

Summary

This stock screen combines three conditions: a daily price range threshold, the closing price above its five-day moving average, and high turnover on the prior day. The accompanying rationale treats a wider range as evidence of trading activity, price above the short moving average as a possible upward trend, and elevated turnover as a sign of market attention. It also suggests adding market capitalization, income, and other fundamental criteria, then using stop-loss and profit controls.

The article provides sample formula and Python-style implementations, but the definitions are inconsistent. The prose describes a range greater than one and turnover above 8%, while the examples use differing decimal or percentage thresholds; one turnover formula compares volume changes rather than clearly calculating turnover rate. The text reports no backtest or measured returns. The screen is therefore best understood as a proposed heuristic requiring corrected data definitions, point-in-time inputs, and validation that accounts for transaction costs, survivorship, and the risk of selecting speculative stocks.

Key ideas

• The proposed screen combines price range, position relative to a five-day moving average, and prior-day turnover.
• The author interprets these conditions as signs of activity, upward trend, and investor attention.
• Fundamental filters and explicit loss and profit controls are suggested as possible additions.
• The sample implementations use inconsistent thresholds and turnover calculations.
• No measured performance is given, so the screen requires careful backtesting and data checks.

Tags

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