Stock Screening with Range, Rising Moving Averages, and a Weekly Crossover

Summary

This stock screen combines three technical conditions: daily price amplitude above 1, rising short-term moving averages, and a weekly price crossing the 30-week moving average. The article presents these as signs of volatility, near-term upward direction, and stronger trend conditions. It describes the screen as a way to find stocks with short-term upside potential, but provides no performance results or empirical validation.

The stated limitations are that these signals do not assess fundamentals or the longer-term trend, and moving-average crossovers can lag price action. The article suggests adding fundamental measures or longer-term averages, and considers other indicators or crossover periods. Its example code also includes additional filters, such as valuation and market capitalization, so that implementation does not exactly match the three-condition rule. The screen is therefore best understood as a technical selection idea requiring further specification and testing.

Key ideas

• The screen combines daily amplitude, rising short-term averages, and a weekly crossing of the 30-week average.
• The author interprets these conditions as signals of volatility and upward price direction.
• The approach does not account for fundamentals or longer-term trends.
• Moving-average crossovers may lag and identify a stock after part of a move has passed.
• The sample implementation adds filters beyond the stated selection logic.

Tags

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