A Stock Screen Combining Amplitude, Positive MACD, and Company Fundamentals

Summary

This article outlines an equity screen requiring amplitude above 1 and MACD above the zero line, with additional consideration of company characteristics. It interprets elevated amplitude as evidence of volatility and positive MACD as a buy signal, then proposes incorporating fundamentals, industry outlook, and financial measures to assess candidates. It includes illustrative charting-formula and Python snippets, including example valuation thresholds, but does not report a backtest or trading results.

The article warns that adding too many company filters can narrow the universe excessively and exclude other attractive stocks. It recommends balancing business and industry considerations with financial indicators and keeping the resulting list practical to trade. The meaning of “company nature” is not specified precisely, and the examples do not document data timing, execution assumptions, or validation, so the screen should be treated as a high-level proposal rather than an established strategy.

Key ideas

• The proposed screen combines amplitude above 1 with MACD crossing above zero.
• It adds company characteristics and suggests examining fundamentals, industry outlook, and financial metrics.
• The examples include valuation criteria but offer no performance evidence or implementation validation.
• Too many filters may shrink the candidate set and cause potentially useful stocks to be missed.
• The article advises considering both the quality of the criteria and whether the results are actionable.

Tags

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