Stock Screening with Rising Lows and a 20/120-Day Moving Average Filter

Summary

The document describes a daily stock screen that combines three technical conditions: amplitude above 1, successively rising lows, and the 20-day moving average above the 120-day moving average. It gives example implementations in a charting formula and Python, including a three-session comparison of lows in the Python version.

The rationale is to identify stocks with improving price floors and a longer-term trend filter, while the author cautions that the method depends on historical technical data and omits company fundamentals. No performance data or backtest evidence is provided, and the examples do not fully specify all calculation conventions. Suggested improvements include evaluating growth, earnings stability, cash position, and other company information alongside the technical screen.

Key ideas

• The screen requires amplitude above 1 and a rising sequence of lows.
• It also requires the 20-day moving average to exceed the 120-day average.
• The examples translate the criteria into a charting formula and a Python workflow.
• The method omits company fundamentals and may become less reliable as market conditions change.

Tags

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