Screening Stocks for High Daily Moves and Rising Moving Averages

Summary

This stock selection rule combines a daily price move threshold, a minimum listing age, and an upward alignment of moving averages. The formula requires the close to exceed averages from short to long lookback windows, with each average higher than the next. The accompanying explanation treats larger daily moves as a sign of activity and upward average alignment as evidence of a recent trend; requiring a longer listing history is intended to avoid very new stocks.

The document provides indicator logic and sample Python-style screening code, but no performance results or backtest. Its code and prose do not align perfectly: the narrative specifies a one-year listing-age filter, while the sample implementation does not apply that condition; likewise, its move calculation is described as amplitude but uses the prior-close change. The strategy is limited to technical filters and may chase active market themes, so the source suggests adding fundamental or other market measures and notes the possibility of data, system, and market risks.

Key ideas

• The screen seeks stocks with a daily price change above one percent and at least a year of listing history.
• It requires the close to exceed moving averages spanning five through 120 sessions.
• The moving averages must be ordered from highest at the shortest window to lowest at the longest window.
• The document supplies screening logic but no evidence of historical or live performance.
• The prose and sample code differ on the listing-age filter and the definition of the price move.

Tags

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