Screening Stocks by Volatility, Recent Limit-Ups, and a Weekly Moving Average

Summary

This stock screen combines three conditions: daily price amplitude above 1%, at least one limit-up event during the previous 25 days, and a weekly price crossing a 30-week moving average. The article interprets high amplitude and a recent limit-up as signs of strong price activity, while the moving-average condition is intended to capture an improving longer-term trend. It describes the selected stocks as candidates for an investment pool rather than specifying entry, exit, or position-sizing rules.

The post offers example indicator logic and Python data-processing code, but the examples appear inconsistent with the written rules: the weekly code checks whether the close is above its moving average rather than explicitly detecting a cross, and its limit-up condition is not a direct implementation of the stated recent daily event. No backtest results or out-of-sample evidence are presented. The article itself flags market weakness, company deterioration, and the possibility of missing other attractive stocks as risks, and suggests adding volume, turnover, and fundamental analysis.

Key ideas

• The screen looks for daily amplitude above 1%, a limit-up event within 25 days, and a weekly moving-average crossing condition.
• The factors are intended to combine recent price activity with a longer-term trend signal.
• The post provides example implementation logic, though parts do not clearly match the described conditions.
• No empirical performance evidence is supplied, and market or company-specific risks remain.

Tags

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