Stock Screening with Capital Strength and Rising Moving Averages

Summary

This post describes a stock screen that ranks by capital strength and requires the stock’s average price to be above its five-day moving average, with its 30-day average moving upward. The combination is intended to pair a capital-flow measure with short- and intermediate-term price direction. It also sketches possible additions: MACD bullish crossovers and RSI readings above 50. The post’s discussion of RSI is internally inconsistent, however: it describes values above 50 as an overbought condition and links that condition to selling, while the proposed screen frames the other criteria as buying filters.

The post offers no backtest, return series, or detailed definition of its capital-strength measure. A brief code reference associates that measure with volume ratio, and suggests close-price measures for the moving-average conditions, but does not specify a reproducible ranking method. It warns that the signals are only references, cannot ensure gains, and are not sell rules. Any use would need clear signal definitions, separate entry and exit logic, and historical testing that accounts for costs and changing market conditions.

Key ideas

• The core screen ranks capital strength and requires price above the five-day average and a rising 30-day average.
• The post treats capital strength as an indicator of investor interest, though it does not fully define the measure.
• MACD crossovers and RSI are proposed as additional filters, but the RSI interpretation is inconsistent.
• The signals are described as buy references and do not provide a complete sell strategy.
• No performance test or evidence is supplied to establish that the screen works.

Tags

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