Stock Screening with Price Range, Rising Averages, and Turnover

Summary

This stock-screening rule selects shares with amplitude above 1, rising or diverging moving averages, and turnover above 2% but below 9%. The article frames amplitude and moving-average behavior as technical filters, while the turnover range is intended to avoid stocks with either very low or very high trading activity. It provides formula and Python examples for applying the conditions, including a short moving-average comparison.

The post describes a screening concept rather than a full strategy: it does not define trade entries, exits, holding periods, position sizes, or portfolio rules. It acknowledges that the filter ignores company fundamentals and cannot remove overall market risk. A narrow turnover range could also leave few candidates and change the balance between risk and opportunity. The post suggests adding other technical or fundamental measures and adjusting turnover limits, but presents no backtest, benchmark, or evidence that the screen improves returns. Its code is illustrative, and the formulas and implementation details may not express the stated moving-average condition consistently.

Key ideas

• The screen combines amplitude above 1, rising moving-average behavior, and turnover between 2% and 9%.
• The turnover band is intended to constrain trading activity among qualifying stocks.
• The article recognizes that the rule omits fundamentals and does not remove market risk.
• A strict turnover band can reduce the number of eligible stocks.
• The post supplies example formulas and code but no performance evidence.

Tags

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