Screening Volatile Stocks with Recent Gains and Moving-Average Crossovers

Summary

This stock screen combines high price movement, recent strong gains, and moving-average crossovers. It calls for amplitude above 1, at least one daily gain of 10% or more within the past 25 trading days, and three moving-average golden crosses involving the 5-, 10-, and 20-day averages. The document also discusses incorporating company fundamentals, competitive position, market conditions, and sentiment measures, although it does not define those filters.

The article provides sample formulas and code, but no backtest, performance figures, or evidence that the conditions forecast continued gains. Its examples do not fully align with the written rules: the code compares the high-low range with ATR and appears to test a single day’s return rather than explicitly checking for a qualifying gain in the past 25 sessions. It warns that the screen omits fundamentals and may be too dependent on past price behavior, and recommends broader validation across indicators and market environments.

Key ideas

• The proposed screen combines high amplitude, a recent large daily gain, and moving-average crossovers.
• The written rule requires a gain of at least 10% within the previous 25 trading days.
• The crossover condition involves the 5-, 10-, and 20-day moving averages.
• The examples do not clearly implement every stated condition, and no performance test is provided.
• The document recommends considering fundamentals and broader market or sentiment conditions.

Tags

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