Screening Stocks with Moving Average Confluence and Bollinger Bands
Summary
The document outlines a stock screen combining at least five overlapping moving averages with a close above the Bollinger middle band and below the upper band. It presents the overlap as a sign that short and medium term trends agree, and the Bollinger condition as evidence of an upward price trend. The screen is specified for 2021 data, though the explanation’s claim that this represents the latest year reflects the post’s original context, not a current period.
The post warns that few stocks may meet the conditions and that Bollinger Bands are imperfect. It suggests adding moving averages and other indicators, but gives no performance results or validation for those changes. Its illustrative code is incomplete and appears inconsistent: the stated upper-band condition conflicts with the code’s strict greater-than comparison, and the functions labeled for Bollinger bands return the same band component. Treat this as a rough screening concept rather than a tested strategy.
Key ideas
- The screen combines moving average overlap with a close above the Bollinger middle band and below the upper band.
- The post associates moving average overlap with agreement between short and medium term trends.
- It cautions that few stocks may pass the filters and that Bollinger Bands are not fully reliable.
- The proposed additions of more averages and other indicators are not supported by reported tests.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.