Stock Screening with Moving Average Alignment and Limit-Up Activity

Summary

This stock-selection proposal combines three filters: at least five overlaps among the 5-, 10-, 20-, 30-, and 60-day moving averages; a 20-day moving average above the 120-day average; and more than two limit-up sessions within ten days. The stated aim is to identify stocks with aligned averages, a rising trend, and recent price activity. However, its final procedural description says at least two limit-up sessions, which conflicts with the title's stricter threshold.

The note explains the filters conceptually but provides no backtest results or empirical support. It acknowledges that the screen ignores company fundamentals and industry prospects, and suggests adding those factors, using more complex trend and activity measures, or tuning parameters. These are suggestions rather than demonstrated improvements, so the method's performance and robustness remain unestablished.

Key ideas

• The screen looks for multiple overlaps among five short- and medium-term moving averages.
• It requires the 20-day average to exceed the 120-day average as a trend filter.
• It uses recent limit-up frequency as a measure of stock activity, though the stated threshold is inconsistent.
• The proposal does not account for fundamentals or industry conditions.
• No backtest evidence is provided to establish performance or robustness.

Tags

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