Screening Stocks with Short-Term Moving-Average Comparisons

Summary

This post describes a stock screen framed around overlapping moving averages and a 20-day average above the 120-day average. Its example strategy calculates 5-, 10-, 20-, and 60-day moving averages, then selects a stock when the 5-day average is above the other three. A later version adds a 30-day average to the comparisons. The post suggests adding longer averages and indicators such as MACD or RSI to broaden the screen.

The method is presented as simple to implement, but the example’s comparisons do not establish that five averages overlap: they only compare the 5-day average with a few others. The stated 20-day-versus-120-day condition and 2021 reference in the title are also not implemented in the sample strategy. No backtest, performance evidence, or precise definition of moving-average overlap is provided. The post warns that relying on short-term averages can miss stocks and may fail in extreme market conditions, so the proposed screen should be treated as an incomplete illustration rather than a validated strategy.

Key ideas

• The example selects stocks when the 5-day moving average exceeds several longer moving averages.
• A later version includes the 30-day average in the comparison.
• The sample comparisons do not actually test whether five moving averages overlap.
• The post proposes adding longer averages or other indicators, but reports no backtest results.

Tags

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