Screening Stocks for Moving Average Confluence and High Turnover

Summary

This stock screen combines at least five overlapping moving averages with a prior-day turnover rate above 8%, using a 2021 data scope. The note interprets moving-average overlap as a sign of price consolidation or a coherent trend, while elevated turnover indicates active trading. It also suggests adding company financial strength and industry prospects to make the selection more complete.

The document supplies illustrative Python logic for calculating several simple moving averages and comparing their latest values. However, its code also mixes turnover calculations with price data and returns a selection when either the moving averages coincide or the turnover conditions hold, so it does not faithfully enforce the stated combined criteria. No backtest results or performance evidence are provided. The screen omits fundamentals and broader market conditions, and the author cautions that price and activity measures alone are insufficient for assessing investment risk.

Key ideas

• The screen looks for at least five overlapping moving averages and prior-day turnover above 8%.
• The stated scope is stocks in 2021.
• The accompanying code uses five moving-average periods but its selection logic does not consistently match the written criteria.
• The note recommends adding company fundamentals and industry analysis.

Tags

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