Stock Screening with Overlapping Moving Averages and an Upward 30-Day Average

Summary

This proposed stock screen selects normally operating companies whose 30-day moving average is rising and whose price has at least five overlapping moving averages. The article interprets overlapping averages as a period of relative stability and a rising 30-day average as an upward trend. It notes that this combination may filter for steadier stocks, while potentially missing shares with larger short-term moves. The text does not define how much overlap qualifies or specify which average periods are included.

The suggested refinements include limiting company size and using shorter averages, such as 10-day or 20-day measures. A partial Python example refers to calculating moving averages and checking whether a shorter average exceeds a longer one, but the code is truncated and does not provide a complete, reproducible screen. No backtest or performance evidence is presented, so the stated stability and upside interpretations remain unverified.

Key ideas

• The screen requires at least five overlapping moving averages and a rising 30-day average.
• It limits the selection to companies described as operating normally.
• The author views average overlap as relative stability and the rising average as an upward trend.
• The screen may miss stocks with sharp short-term movements and may take time to identify candidates.
• The example code is incomplete, and the article reports no backtest results.

Tags

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