Stock Screen Using Trading Range, Volume, a Gap Up, and Moving Averages

Summary

This post proposes screening stocks for daily price amplitude above 1%, current volume above 10,000 lots, a higher open than the previous close, and a trend condition described as at least five moving averages overlapping. It frames these conditions as a way to find active shares with possible upward momentum. The post includes indicator and Python examples, but no backtest, return figures, or other evidence that the screen has predictive value.

It cautions that technical conditions alone omit fundamentals and broader market factors, and that moving averages rely on historical prices. The suggested additions include turnover, other indicators, candlestick patterns, trend lines, and financial measures. There is a notable mismatch between the stated moving-average overlap condition and the formula shown, which checks whether closes stayed above the five-day average for five periods. The Python example also does not clearly implement all stated conditions. Treat the screen as an unvalidated starting point and verify the calculations and data conventions before relying on it.

Key ideas

• The proposed screen combines price amplitude above 1%, volume above 10,000 lots, a gap up, and a moving-average trend condition.
• The post associates high range and volume with activity and a higher open with potential upward movement.
• Its written moving-average condition differs from the formula, which checks closes above the five-day average across five periods.
• Technical-only screening can miss fundamental and broader market influences, and historical averages may not forecast future prices.
• The post offers implementation examples but no performance evidence.

Tags

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