Screening Stocks for Five Moving Averages and Repeated Limit-Ups

Summary

This post proposes screening stocks that have at least two limit-up sessions within 500 days and five moving averages described as overlapping. It interprets the moving-average condition as a possible sign of nearby support and resistance, and repeated limit-ups as a sign of attention and activity. Its code reference names 5-, 10-, 20-, 60-, and 120-day averages, but the excerpt only computes two relative differences at the latest observation; it does not show a complete overlap test or implement the limit-up count.

The article offers no backtest or evidence that these conditions forecast returns. It warns that the screen focuses on price behavior and attention while omitting fundamentals, and that sharp market moves may cause drawdowns. It suggests adding valuation measures and other strategies, including trend-following, but does not describe a validation process or rules for combining signals. The proposal is therefore an incomplete screening idea rather than a demonstrated trading system.

Key ideas

• The proposed screen combines at least two limit-up sessions over 500 days with five moving averages described as overlapping.
• The example identifies averages with 5-, 10-, 20-, 60-, and 120-day periods.
• The shown code excerpt computes relative differences for only two pairs of averages and leaves the full overlap test unfinished.
• The post gives no backtest and warns that the screen omits fundamentals and may face drawdowns in volatile markets.
• It suggests adding valuation measures or other strategy signals without specifying how to test them.

Tags

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