Stock Screening with Moving Average Alignment, Volume, and Trend Filters
Summary
This document describes a stock screen combining several technical and trading conditions: at least five overlapping moving averages, current volume above 10,000 lots, a higher opening price, and an upward-sloping 30-day average. Its proposed final version adds an upward 10-day average, market capitalization above 1 billion, and a price-to-earnings ratio below 20. The accompanying explanation treats moving-average clustering as a sign of price stability that might precede a reversal, while rising averages and a higher open are framed as evidence of upward potential.
The post includes sample code that compares recent moving-average values and closing prices, but the implementation does not clearly test the stated overlap, opening-price, or volume conditions. It provides no historical results or performance evidence. The author notes that the screen may miss rapid advances and can still suffer losses after a sudden decline. Its claims about stability and reversal are hypotheses; the conditions require precise definitions and out-of-sample testing before use.
Key ideas
- The initial screen combines moving-average overlap, a volume threshold, a higher open, and a rising 30-day average.\nThe proposed refinement adds a rising 10-day average, a market-capitalization floor, and a valuation cap.\nThe explanation presents clustered averages as potential precursors to a reversal, but provides no supporting analysis.\nThe sample code does not implement all of the screen conditions described in the text.\nThe post identifies missed rallies and sharp declines as possible risks.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.