Stock Screening with Price Amplitude, Turnover, and Converging Moving Averages

Summary

This document proposes screening stocks for price amplitude above 1, prior-day actual turnover between 3% and 28%, and at least five converging moving averages. The intended combination uses price movement and trading activity to find active stocks whose trend measures cluster together. It gives example indicator and Python code, but the examples implement strict equality among five moving averages, which is a narrower condition than general convergence; the turnover calculation also appears to use volume changes rather than a clearly defined turnover rate.

The article warns that volatile or unstable markets may undermine the screen and that moving-average signals can be false. It suggests combining the conditions with indicators such as MACD or RSI, and with valuation or sector-rotation considerations. It reports no backtest or outcome data, so it offers a candidate-selection idea rather than evidence of a profitable trading rule. The formulas and data handling would need careful verification before research use.

Key ideas

• The proposed screen combines amplitude above 1, prior-day turnover from 3% to 28%, and five converging moving averages.
• The example code checks exact equality among five moving averages, which may be stricter than the stated convergence concept.
• The document warns that unstable markets and false moving-average signals can weaken the selection rule.
• It suggests adding other technical or market-context measures, but 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.