Stock Screen for Converging Moving Averages, Heavy Volume, and Gaps Up

Summary

This stock screen looks for shares with at least five moving averages converging, trading volume above 10,000 lots, and a record of opening higher during 2021. The article frames moving-average convergence and gaps up as possible signs of trend or market interest, and includes a basic data-filtering example. The example uses a single U.S. ticker and does not implement the stated moving-average convergence condition, so it is not a complete reproduction of the screen.

The article acknowledges that the conditions cannot reliably predict future performance and may exclude promising stocks because they omit other influences. It suggests adding company, sector, or valuation filters, but provides no backtest results or evidence that the proposed screen is profitable. The stated historical year also limits how directly the rule can be applied to current selection without adapting its time condition.

Key ideas

• The proposed screen combines at least five converging moving averages with volume above 10,000 lots.
• It also requires a gap-up opening during 2021.
• The article presents convergence and gap-ups as possible signs of trend or market interest, not as proven predictors.
• Its code example does not implement the moving-average convergence condition.
• No backtest or profitability evidence is supplied.

Tags

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