Stock Screen Using Daily Range, Low Price, and a Weekly Moving-Average Cross

Summary

The document describes a technical stock-selection rule combining a daily amplitude condition, a price below 20, and a weekly close crossing above its 30-week moving average. It includes indicator-formula and Python-style examples: weekly closing prices are sampled, a rolling 30-week average is calculated, and candidates are identified when the latest close is above that average while the prior close was at or below it. The article characterizes the weekly cross as confirmation of an upward trend, but it reports no backtest, trade outcomes, or supporting performance evidence.

The stated limitations are that the rule ignores fundamental changes and that a weekly moving-average signal can be slow to respond. Suggested improvements include adding valuation measures or other indicators and combining strategies for different market conditions. The article’s code examples use inconsistent expressions for amplitude and price, and its labeling of a weekly signal is not fully clear. These details should be reconciled against the intended market data and definitions before implementation.

Key ideas

• The screen combines a daily amplitude filter, a closing price below 20, and a weekly close crossing above its 30-week average.
• The crossover is defined by the current weekly close being above the average after the prior close was at or below it.
• The article supplies formula and Python-style examples but no evidence of historical performance.
• Weekly moving-average signals may lag price changes, and the rule does not account for fundamentals.
• The example formulas contain inconsistencies that should be checked before implementation.

Tags

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