Stock Screening with Weekly Moving-Average Crossovers and Volume Ratio

Summary

The document outlines a stock screen that combines daily price amplitude, an upward crossover of the five-week moving average above the ten-week average, and a relative-volume band. Its stated selection logic uses volume ratio above 1.5 and below 6, while the title describes the condition more generally as greater than 1. The rationale is to find stocks showing price movement and a rising weekly trend alongside elevated, but not extreme, trading activity. Formula descriptions and sample implementation details are included.

The article warns that these indicators may mislead, especially for illiquid stocks, and may overlook broader market conditions, company fundamentals, and industry trends. It suggests combining technical and fundamental analysis or adding other indicators. The document does not provide measured returns, a completed backtest, transaction-cost assumptions, or a clear exit and risk-management plan. The screening rules should therefore be read as a hypothesis for further testing rather than evidence of profitability.

Key ideas

• The screen pairs a weekly moving-average bullish crossover with price amplitude and relative volume conditions.
• The body specifies a volume ratio between 1.5 and 6, despite the broader threshold in the title.
• The author notes that indicator signals may be unreliable in illiquid stocks or changing market conditions.
• Fundamental, industry, and additional technical measures are suggested as possible complements.
• No performance results or exit and risk rules are documented.

Tags

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