Volatile Stock Screen Near the 10-Day Average, Excluding Prior Limit-Ups

Summary

This stock-selection rule looks for shares with daily amplitude above 1%, an opening price within 2% of the 10-day moving average, and no prior-day limit-up. The article frames volatility as a source of potential short-term opportunity, the opening-price condition as proximity to a recent average, and the exclusion as a way to avoid chasing stocks after an unusually strong session. It supplies indicator and Python examples for implementing those filters.

The note reports no backtest or performance results. It acknowledges that the criteria are narrow, may perform poorly in choppy or sideways markets, and can miss fundamental changes. Suggested refinements include adjusting the volatility threshold or moving-average choice, considering stock rankings and money flows, diversifying, and managing position sizes. Its prior-day limit-up proxy compares the prior close with the prior high, so the implementation may not reliably capture the market's formal limit-up rules across different stocks or market conditions.

Key ideas

• The screen requires daily amplitude above 1%, an open within 2% of the 10-day average, and no prior-day limit-up.
• The method is designed to identify volatile shares opening near a short moving average.
• The article presents implementation examples but no backtest or performance evidence.
• Narrow technical filters may fail in sideways markets and ignore fundamental changes.
• The note recommends broader evaluation, diversification, and position risk controls.

Tags

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