Stock Screening with Price Range, Five-Day Average, and Ten-Day Return

Summary

This stock selection idea combines three filters: price amplitude above 1, the stock’s average price above its five-day moving average, and a positive ten-day return below 35. The accompanying explanation interprets the amplitude filter as selecting stocks with room for trading activity, the moving-average condition as a possible sign of an upward trend, and the return ceiling as a way to avoid the strongest recent run-ups.

The article warns that a stock can still be overheated below the stated return ceiling and that high-amplitude names carry greater risk. It suggests adding technical, fundamental, and market context, along with position limits and stop levels. A code example is included, but it appears not to match all the written filters exactly, including its moving-average comparison. No backtest, performance figures, or evidence of predictive value are supplied, so the rules are a screening proposal rather than a validated strategy.

Key ideas

• The screen combines price amplitude, a five-day moving-average condition, and a bounded ten-day return.
• The author treats the moving-average condition as a possible indication of an upward trend.
• High amplitude and recent gains can still coincide with elevated risk or overbought conditions.
• The example code may not implement the written screening conditions consistently.
• The post provides no backtest or performance evidence.

Tags

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