Stock Screening with Price Amplitude and Three Moving Average Crossovers

Summary

This stock selection idea combines a price amplitude filter with simultaneous moving average crossovers. It aims to find shares with notable price movement and a possible shift toward a rising short- or medium-term trend. The screen also restricts selections to the current calendar year. The document gives example formulas and Python-style pseudocode, but does not report backtest results or evidence that the conditions predict returns.

The author cautions that technical signals do not account for company finances or valuation and may fail to forecast future prices. Suggested refinements include adding fundamental measures and other trend signals, then assessing the combined setup. The examples contain ambiguities: the crossover periods are unspecified, and the amplitude threshold's scale is not clearly defined. The method is therefore a screening template, not a fully specified or validated trading strategy.

Key ideas

• The screen combines a price amplitude threshold with three moving average crossovers.
• It applies a current-year filter to keep selections tied to the present calendar year.
• The document provides formula and Python examples but no performance evaluation.
• Fundamental factors and additional trend signals are suggested as possible refinements.
• Technical indicators can miss financial or valuation risks and may not predict future prices.

Tags

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