Screening Stocks by Volatility, Rising Moving Averages, and Prior Lows

Summary

This stock-selection method combines three short-term price conditions: daily range above a threshold, upward separation of moving averages, and a close above the previous session’s low. The rationale is to find stocks showing both recent volatility and signs of upward momentum. The document also offers example implementations and suggests adding technical and fundamental measures to broaden the assessment.

The approach is explicitly short-term and does not account for long-run trends or company fundamentals. Its strict filters may exclude steadier stocks with weaker recent moves, while selecting securities with poor underlying prospects. The examples include extra filters and implementation details that do not fully match the stated core rules, so they should not be treated as a validated specification. No backtest results or performance evidence are provided; the selection logic would need independent testing and risk evaluation.

Key ideas

• The screen combines price range, moving-average direction, and a close above the previous low.
• The stated aim is to identify stocks with short-term upward momentum.
• The method omits long-term trend and fundamental analysis.
• The document provides no performance results, and its code examples do not exactly match the core rules.

Tags

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