Stock Screening with Weekly Moving Average Crossovers and Price Filters

Summary

This stock selection method combines a daily amplitude threshold with a weekly moving average crossover and a filter excluding stocks that hit the upper price limit the previous day. The document presents the crossover as a technical strength signal and the prior-day filter as a way to avoid entering immediately after a sharp rise. It also offers formula and Python examples intended to implement the screen.

The article warns that fixed conditions may not adapt to changing markets and that a limit-up flag may not fully represent a stock’s actual price move. Its Python example calculates moving averages from daily closes, so it does not clearly implement the stated weekly crossover; the implementation should be checked before use. The document provides no performance results or evidence that the criteria predict future returns. It suggests adding other indicators and adjusting the screen to market conditions.

Key ideas

• The screen looks for amplitude above a threshold and a weekly five-period moving average crossing above the ten-period average.
• It excludes stocks that reached the upper price limit on the prior day.
• The article provides formula and Python examples, but the Python moving averages appear to use daily rather than weekly data.
• The fixed rules may not adapt well to changing market conditions, and the limit-up filter may be an imperfect proxy for recent price strength.

Tags

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