Screening Stocks for Intraday Drops and Upward Moving-Average Signals

Summary

The post describes an equity selection screen combining price movement, volatility, and a short-term trend condition. Its stated criteria are amplitude above 1, upward-diverging moving averages, and an intraday maximum decline between 4% and 5%. The proposed rationale is to find shares that have fallen sharply but may rebound while showing an upward price tendency. It also mentions adding broader trend, index, or moving-average turning-point measures to refine the screen.

The source is internally inconsistent: the example formula and Python reference do not cleanly implement all stated conditions, and the Python example introduces a price-to-book filter absent from the final screen. The post provides no backtest results or evidence that the selected shares rebound. It acknowledges that short-term indicators can be affected by market swings and company or industry conditions. Treat the rules as an illustrative screening idea, not a validated strategy, and verify indicator definitions and calculations before evaluating it.

Key ideas

• The stated screen combines amplitude, upward-moving-average behavior, and a sharp intraday decline.
• The proposed rationale is to identify potentially oversold stocks with signs of an upward trend.
• Broader market and trend measures are suggested as possible additional filters.
• The code examples do not consistently match the stated selection rules.
• No performance evidence is provided, so the screen remains an unvalidated idea.

Tags

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