Screening Stocks by Volatility, Moving Averages, and Position Growth

Summary

This stock-screening proposal combines three conditions: amplitude above 1, upward-moving or diverging daily averages, and a daily position-growth share above 5%. It interprets the amplitude condition as a volatility filter, moving-average behavior as a short-term trend signal, and position growth as a sign of investor interest. The note also sketches a technical-indicator expression and a Python example using market data, price averages, and a change filter.

The article gives no backtest, measured results, or evidence that these conditions predict returns. Its examples do not fully align with the verbal rules: the code uses different-looking thresholds and a moving-average comparison whose direction may not match the stated upward-divergence idea. The position-growth measure may also reflect sentiment and can change quickly. The author notes that the screen omits company fundamentals and suggests combining it with financial data or other indicators. Data definitions, calculation conventions, and implementation details would need review before relying on the signal.

Key ideas

• The proposed screen combines price amplitude, moving-average behavior, and a position-growth measure.
• The article treats these inputs as proxies for volatility, short-term trend, and investor interest.
• The code examples may not implement the verbal thresholds and trend condition consistently.
• No empirical performance evidence is supplied, and position growth may be sentiment-sensitive.
• The author suggests adding fundamental and technical measures for broader evaluation.

Tags

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