Screening Stocks for Aligned Moving Averages and Repeated Limit-Ups

Summary

This stock-screening idea combines technical conditions intended to find lower-priced shares with recent upward momentum. It calls for at least five moving averages to converge, a share price below the stated threshold, and at least two limit-up sessions within the past 500 days. The specified averages are 5, 10, 20, 60, and 120 days. The rationale is that clustered averages indicate a notable price configuration, while repeated limit-ups may signal strong demand.

The document offers no backtest, sample definition, or evidence that the screen predicts returns. It cautions that limit-ups can reflect temporary sentiment and that apparent strength may reverse. It suggests adding valuation or size measures and indicators such as MACD or Bollinger Bands, but provides no tested optimization. The accompanying sample code is incomplete and its chained equality expression would not reliably test whether all averages coincide in pandas; the written price condition is also unusually rendered. Treat the criteria as a rough screening proposal that needs precise definitions, survivorship-aware data, transaction-cost assumptions, and out-of-sample evaluation before use.

Key ideas

• The proposed screen combines convergence of five moving averages with repeated limit-up events.
• It specifies 5-day, 10-day, 20-day, 60-day, and 120-day averages.
• The stated rationale treats clustered averages as a price setup and limit-ups as evidence of momentum.
• The document provides no performance test, so the screen's predictive value is unknown.
• The author warns that sentiment-driven rallies can reverse and suggests additional filters for evaluation.

Tags

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