Stock Screening with Weekly Moving Average Crossovers and Three Down Days

Summary

This stock-screening idea combines three conditions: amplitude above 1, a weekly five-period moving average crossing above the ten-period average, and three consecutive daily declines. The proposed interpretation is that the longer-term crossover signals an upward trend while the recent losing streak indicates short-term weakness that may offer rebound potential. It is presented as a short-term selection approach, not as a tested trading system.

The document gives indicator conditions and example implementations, but reports no backtest, performance figures, or rules for entries, exits, or position sizing. It warns that the combined filters may return few stocks, limiting diversification, and that technical signals omit company fundamentals. It suggests adding fundamental and industry analysis or broadening the filters with indicators such as MACD or RSI. The code examples should be treated cautiously: the written description specifies weekly averages and price amplitude, while the sample code uses volume and does not clearly implement the weekly calculation. These differences make the intended screen less precise without further validation.

Key ideas

• The screen combines amplitude above 1 with a weekly five-period average crossing above the ten-period average.
• Three consecutive lower closes are treated as short-term weakness that may precede a rebound.
• The document gives no performance evidence or complete trade-management rules.
• A narrow screen may produce too few stocks for a diversified portfolio.
• Fundamental and industry factors are omitted, and the code examples may not match the stated conditions.

Tags

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