Stock Screening with Price Range, Rising Averages, and Turnover

Summary

This stock-selection rule combines three filters: daily amplitude above 1, upward dispersion of moving averages, and turnover between 3% and 12%. The stated rationale is to find shares with meaningful price movement, a short-term upward bias, and a moderate level of trading activity. The document gives an indicator expression for the moving-average condition and a Python example that also filters for positive PE before evaluating price and turnover data.

No backtest results or performance measurements are provided, so the claimed potential for short-term strength remains unverified. The article notes that turnover can reflect sentiment and that the screen omits fuller company fundamentals. It suggests adding fundamental inputs and indicators such as RSI, but does not specify how to combine them or evaluate the resulting screen. The code is explicitly illustrative, and its data handling and filter consistency would need review before use.

Key ideas

• The screen selects stocks by amplitude, an upward moving-average condition, and a bounded turnover rate.
• The article describes price movement, short-term direction, and trading activity as the three selection dimensions.
• The Python example additionally filters for positive PE.
• The document provides no backtest evidence and warns that fundamentals and market sentiment are not fully addressed.

Tags

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