Short-Term Stock Screen Using Range, Ten-Day Average, and Daily Return

Summary

This screen looks for stocks with a daily trading range above 1%, an opening price within 5% of the ten-day moving average, and a daily return between -5% and 2.6%. The article frames the combination as a search for possible short-term rebounds among shares in a consolidation or adjustment phase. It also provides formula and Python examples for calculating the range, checking the moving-average band, and combining the conditions.

The document offers a rationale for each filter but provides no performance test or evidence that the screen predicts rebounds. It notes that the method ignores fundamentals and that shares with limited recent gains may not rebound enough to be profitable. Suggested extensions include valuation measures, additional technical indicators, more specific trading rules, and risk controls. It does not specify how to enter or exit positions, or how to size them, so the screening criteria alone do not define a complete strategy.

Key ideas

• The screen requires a daily range above 1% and an opening price within 5% of the ten-day average.\nIt filters daily returns to the interval from -5% to 2.6%.\nThe proposed use is to find possible short-term rebounds during an adjustment phase.\nThe document gives implementation examples but no backtest or reported returns.\nIt suggests adding fundamentals, other indicators, and risk controls.

Tags

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