Screening Stocks by Recent Gains, Moving Average Convergence, and Limit Status
Summary
This proposed stock screen selects shares whose 10-day gain is positive but below 35%, that did not close at the daily price limit the previous day, and that show convergence among at least five moving averages. The article presents the gain range as a way to favor stocks with recent upward movement while avoiding the largest recent surges. It interprets moving-average convergence as relative short- and medium-term stability, while acknowledging that such stocks may still fluctuate sharply.
The suggested refinements are to include more moving averages or other technical indicators. The document offers no historical test or performance evidence, and its code excerpt is incomplete: it starts describing stock lists and moving-average intersections without demonstrating the full stated filters. Consequently, the screen is a qualitative selection concept rather than a reproducible, validated strategy. Its assumptions about price-limit status and future upside also require testing against the relevant market rules and data.
Key ideas
- The screen combines a bounded positive 10-day return with a prior-day price-limit exclusion.
- It also requires convergence among at least five moving averages.
- The article associates convergence with stability but notes that selected stocks can remain volatile.
- Additional averages and technical indicators are proposed as possible refinements.
- The code excerpt is incomplete and supplies no backtest evidence for the full screen.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.