Stock Screening with Three Moving Average Crossovers and High Volume

Summary

The document describes a short-term stock screen that combines price movement, technical signals, trading activity, and opening strength. It selects shares with an amplitude above a stated threshold, a simultaneous sequence of three moving-average crossovers, current volume above the stated level, and an opening price above the previous close. The accompanying example also adds a comparison between medium- and longer-period moving averages and ranks candidates by trade price.

The rationale is that amplitude reflects volatility, crossover signals suggest directional change, volume indicates activity, and a higher open may reflect buying interest. The post provides formula and Python examples, but it does not report a measured performance result or explain how the three-cross condition should be validated. It cautions that short-term technical signals omit fundamentals and can be distorted by fluctuating volume. It recommends considering financial and industry factors as well; those additions are suggestions, not evaluated parts of the demonstrated screen.

Key ideas

• The screen combines amplitude, three moving-average crossovers, volume, and a gap-up open.
• The example implementation also compares medium- and long-period moving averages and ranks selected shares by trade price.
• The post gives a rationale for each filter but provides no performance evidence for the combined strategy.
• Short-term technical filters may overlook company fundamentals and industry conditions.
• Volume can fluctuate and should be assessed alongside other information.

Tags

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