Stock Screening with Short- and Long-Term Moving Averages and Accumulation
Summary
This document outlines an equity screen combining three conditions: the day's increase in holdings must exceed a stated threshold, the previous day must show institutional control, and the 20-day moving average must be above the 120-day average. The rationale is that accumulation may indicate incoming capital, institutional activity may suggest concentrated interest, and the moving-average relationship may reflect stronger recent price behavior.
No test results or evidence of profitability are provided. The article acknowledges that the screen focuses on flows and recent price action while leaving out company finances and industry prospects. It suggests incorporating fundamental measures and adding a stop-loss process. Its code snippets are illustrative and incomplete: the described filtering function is not supplied, and the data example does not demonstrate a working end-to-end selection process. The screen therefore serves as a rough candidate-generation rule, not a validated strategy.
Key ideas
- The screen combines a daily holdings increase threshold, prior-day institutional control, and a moving-average trend condition.
- The moving-average filter compares 20-day and 120-day averages.
- The article interprets accumulation and institutional activity as signs of capital interest.
- It provides no backtest or performance evidence.
- It recommends considering fundamentals and risk controls such as stop losses.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.