Stock Screening with Price Range, Ten-Day Average, and Concentration Filters

Summary

The document describes an equity screening idea combining daily price range, the opening price relative to a ten-day moving average, and a concentration measure. It presents the range threshold as a way to find volatile shares and treats an opening price near the moving average as a possible sign of adjustment. It also recommends checking financial measures and industry conditions alongside the screen. Example formulas and Python snippets are supplied, but they contain material inconsistencies that make the proposed filter unreliable as written.

Most notably, the stated concentration condition requires a value below 20% and at least 70% at the same time, so no observation can satisfy both. The snippets also differ in how they calculate the price range, and the concentration expression is not explained sufficiently to establish what it measures. The document provides no backtest, performance evidence, or detailed operational rules. Treat the screen as an incomplete example that needs corrected conditions, clarified definitions, and independent testing before use.

Key ideas

• The proposed screen combines price range, opening price near a ten-day moving average, and a concentration measure.
• The text associates a larger price range with possible trend trading, but supplies no performance evidence.
• The stated concentration bounds are mutually incompatible and would exclude every stock.
• The formulas need clarification and correction before the screen can be implemented or evaluated.
• The author recommends considering financial and industry information alongside the screening criteria.

Tags

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