A Short-Term Stock Screen Using Price Amplitude and Lagged MACD

Summary

This proposed stock screen combines a daily price-amplitude threshold, a closing price of 18.5 yuan, and a negative MACD reading from two days earlier. The article frames the conditions as a way to find shares with larger short-term price swings while accounting for a recent weak technical signal. It also suggests sorting candidates by trading value and provides example indicator logic and a Python implementation outline.

The author warns that technical-only screening can produce false signals and overlooks company fundamentals and other risks. Suggested refinements include adding financial measures, company quality checks, volume and price behavior, and explicit stop-loss and take-profit rules. The article gives no backtest, return data, or evidence that the screen predicts gains, and its sample implementation contains apparent data and calculation inconsistencies. Treat it as an illustrative screening idea requiring validation, rather than a tested trading strategy.

Key ideas

• The screen combines amplitude above one percent, a closing price of 18.5 yuan, and a negative MACD reading from two days earlier.
• The proposed use is to identify stocks with short-term volatility for short-term trading.
• The article suggests sorting candidates by trading value and adding fundamental and volume-price filters.
• The author highlights false signals and the omission of fundamental and broader risk factors.
• No backtest or performance evidence is presented, and the sample implementation has apparent inconsistencies.

Tags

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