Screening Stocks with Weekly Moving Average Crossovers and Rising Averages

Summary

This stock-selection method combines three conditions: daily price amplitude above 1%, a weekly five-period moving average crossing above the ten-period average, and daily moving averages spreading upward. The document also gives a related implementation that calculates amplitude from the daily high, low, and prior close, then compares recent exponential moving average differences as a proxy for upward expansion.

The screen is presented as a way to find stocks with favorable short-term price action, but no backtest results or performance evidence are provided. Its stated limitations are that it emphasizes short-term market conditions, does not account for fundamentals or long-term value, and may select stocks that have already risen sharply and could pull back. The author suggests adding indicators such as MACD and consulting company announcements and annual reports, while adjusting the conditions to market circumstances.

Key ideas

• The screen requires daily amplitude above 1%, a weekly five-period average crossing above the ten-period average, and upward divergence among daily averages.
• The example code uses recent changes in exponential moving average differences to represent upward expansion.
• The method targets short-term price behavior and does not assess company fundamentals or long-term value.
• Stocks that have risen sharply may face a pullback, and the document provides no performance testing.

Tags

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