Screening Stocks for High Amplitude and Simultaneous Moving Average Crossovers

Summary

This stock-selection screen combines daily price amplitude above one percent with a 2021 date filter and three moving average crossovers. It defines the crossover conditions using five-, ten-, and twenty-day averages, requiring the shortest average to cross above both longer averages and the ten-day average to cross above the twenty-day average. The document provides both a formula-style expression and a Python example for assembling the conditions into a candidate list.

The rationale is that larger amplitude may accompany greater price movement, while simultaneous bullish crossovers may indicate improving short-term price direction. The article offers no backtest, return series, benchmark, or evidence that the screen predicts future performance. It cautions that volatile stocks carry greater risk and that moving average signals do not establish durable strength. It suggests considering longer-term trend and fundamental measures, and advises controlling exposure. The example describes screening logic rather than a complete, validated trading system.

Key ideas

• The screen requires daily high-low amplitude above one percent during 2021.
• It combines five-, ten-, and twenty-day moving average crossover conditions.
• The article supplies formula and Python examples for selecting candidates.
• It gives no performance test and warns that volatility and crossover signals have limits.
• Longer-term trend and fundamental criteria are suggested as possible additions.

Tags

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