Stock Screening with Daily Range, 10-Day Average, and Recent Gains

Summary

This stock selection method combines a daily range filter, an opening-price condition relative to the 10-day moving average, and a recent price-gain condition. The stated criteria require amplitude above 1, an open within roughly five percent of the moving average, and a qualifying gain of at least 10 percent over the recent 25-trading-day window. The document also gives example indicator and Python implementations of the screen.

The rationale is to find shares showing both activity and recent strength while keeping the opening price near its short-term average. The article warns that technical filters can miss fundamentals, that a brief rally may not persist, and that the approach may suffer substantial drawdowns. It presents no backtest results, and its prose description of a one-day gain criterion differs from the code’s 25-day return calculation, so the exact intended signal is ambiguous.

Key ideas

• The screen combines a range threshold, proximity of the open to a 10-day moving average, and recent price strength.
• The prose describes a single-day gain within the lookback, while the example code calculates a 25-day return.
• The method is a technical stock filter and does not incorporate fundamental data.
• The document flags weak persistence and drawdown risk but supplies no performance test.

Tags

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