Screening Stocks for Range Expansion, Two-Day Highs, and Rising Averages

Summary

This stock selection rule combines three daily price conditions: percentage amplitude above 1, a current high equal to the highest high across the current and previous day, and a rising 30-day simple moving average. The intended screen seeks shares with recent volatility and a short-term high while the longer trend is upward. The document also suggests checking company and industry fundamentals alongside the technical conditions.

The article presents indicator formulas and illustrative code, but supplies no historical test, returns, or comparison with a baseline. It cautions that moving averages can lag, short and long trends may conflict, and technical filters omit fundamentals. The rule is therefore a screening concept rather than evidence of a profitable strategy; its thresholds and suitability across sectors would need evaluation.

Key ideas

• The screen requires daily amplitude above 1 and a current high matching the two-day maximum.
• It also requires the 30-day moving average to rise from the prior day.
• The article frames the combination as a way to find volatile stocks with an upward trend.
• It warns that moving-average lag and absent fundamental analysis can lead to poor selections.
• No backtest or performance results are presented.

Tags

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