Screening Stocks for Active Trading and Moving-Average Confluence

Summary

This post proposes screening stocks by daily price amplitude, relative trading volume, and the alignment of several moving averages. Its stated conditions are amplitude of at least 1%, a volume ratio between 1.5 and 6, and a requirement that the close remain above its five-day moving average across five observations. The author interprets the volume range as a way to find active shares without extreme activity, while clustered moving-average behavior is associated with support, resistance, or consolidation.

The screen is described as suited to short-term use in a market with limited volatility, but it omits company fundamentals, industry conditions, and a defined risk-control process. The post suggests adding market and sector context, fundamental quality measures, and ongoing risk controls. It includes indicator formulas and a sample script, but no backtest, performance results, or evidence that the filters are predictive; the method therefore remains an unvalidated screening idea.

Key ideas

• The screen uses price amplitude of at least 1% and a volume ratio between 1.5 and 6 to identify active stocks.
• It also requires five closes above the five-day moving average.
• The author associates moving-average confluence with potential support, resistance, or consolidation.
• The method omits fundamental quality, sector context, and a complete risk-control framework.
• No performance data or backtest is reported.

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