Stock Screening with a Rising 30-Day Average and Trading Heat

Summary

The document describes a stock screen combining daily price amplitude above 1%, a rising 30-day average, and ranking by stock heat. It presents amplitude as a sign of trading activity and the average’s direction as a trend filter. The heat ranking is intended to prioritize stocks attracting greater market attention. It also suggests reviewing company and industry fundamentals, including financial condition, profitability, and management, before treating a screened stock as attractive.

The article provides indicator definitions and a brief Python illustration, but no backtest, performance figures, or evidence that the combined conditions predict returns. Its examples have implementation gaps: the average field is referenced without being calculated, and the described rising-average condition is represented as price above the average. The article itself cautions that technical filters can overlook fundamentals, that short-term signals may miss longer-term variation, and that a price above its average does not ensure future gains.

Key ideas

• The screen combines amplitude above 1%, stock heat ranking, and a rising 30-day average.
• Amplitude and heat are used as activity and attention filters, while the moving average provides a trend condition.
• The article recommends evaluating company and industry fundamentals alongside technical signals.
• The proposed rules are not supported by reported backtest results, and the code example has implementation gaps.

Tags

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