Stock Screen for High Amplitude, Two-Day Highs, and Price Above the 250-Day Average

Summary

This stock-selection rule combines three technical conditions: daily amplitude above 1%, a high equal to the highest level across the current and prior day, and the prior day's price above its 250-day moving average. The document presents the screen as a way to identify shares showing substantial movement and recent strength relative to a long-term trend measure. It provides indicator formulas and a compact Python-style example, but no backtest, sample, or performance results.

The author cautions that the rule omits fundamental information and that the 250-day average is lagging. Suggested extensions include considering company fundamentals, valuation, industry conditions, and additional technical indicators. These suggestions are not evaluated in the document. The criteria can identify recent price strength, but the text does not specify transaction timing, portfolio construction, risk controls, or how the screen would be validated before live use.

Key ideas

• The screen requires amplitude greater than 1% and a two-day rolling high.
• It also requires the prior day's price to be above its 250-day moving average.
• The document frames the criteria as a technical screen for volatile stocks with recent strength.
• No backtest or performance evidence is provided.
• The rule omits fundamentals and uses a lagging long-term average.

Tags

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