Stock Screening with Moving-Average Convergence and an Opening-Gain Limit

Summary

This note describes an equity selection screen combining three conditions: at least five converging moving averages, a favorable company classification, and a gain below 6% at 9:25. The moving-average condition is framed as evidence of relatively stable price behavior; the early gain filter is intended to exclude stocks that have already moved sharply. The meaning of the company classification is not defined, and no rule is given for measuring convergence.

The document offers a rationale for each filter but supplies no backtest results or performance evidence. It warns that the screen overlooks financial health, industry conditions, and broader economic or political factors, and that one early-session price reading cannot predict long-term performance. Suggested additions include financial and industry information and other technical indicators. The code fragment does not implement the selection logic, so the proposal remains a screening concept rather than a reproducible strategy.

Key ideas

• The screen combines converging moving averages, company classification, and a 9:25 gain below 6%.
• The early price filter is intended to avoid stocks with a sharp initial move.
• The document does not define company quality or how to measure moving-average convergence.
• It warns that the conditions omit fundamentals and broader market drivers, and provides no performance evidence.

Tags

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