Stock Screening with Turnover, Ten-Day Average, and Prior Low

Summary

This document describes a short-term stock screen using three conditions: turnover between 3% and 12%, an opening price within 5% of the ten-day moving average, and a close above the previous day’s low. It presents the rules as a way to find liquid stocks with signs of near-term price strength. The article also provides equivalent indicator logic and a Python example for applying the screen to price data.

No performance results or backtest evidence are reported. The screen focuses on price and turnover, so the article cautions that it does not account for company fundamentals or longer-term trends, and short-term price swings can affect its selections. It suggests combining the rules with other technical or fundamental measures and adding exit criteria such as stops or profit targets. These are general suggestions; the document does not specify or test particular enhancements.

Key ideas

• The screen requires turnover between 3% and 12%.
• The opening price must be within 5% of the ten-day moving average.
• The closing price must exceed the previous session’s low.
• The article gives no evidence of profitability and notes that the screen omits fundamentals and long-term trends.

Tags

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