A Stock Screen Combining Daily Range, Reversal, and Rising MACD Signals

Summary

The post describes a technical stock screen that combines three conditions: daily high-to-low range above a stated threshold, a reversal or “wraparound” price pattern, and a rising MACD signal line (DEA). It provides example formulations for indicator-based screening and a Python-style implementation that retrieves price series and MACD fields, evaluates the conditions, and ranks selected names by heat or popularity. The screen is intended to identify stocks showing volatility, a price-pattern reversal, and improving momentum together.

The post cautions that the rules rely on only a small set of technical features and may behave differently across sectors and market conditions. It suggests adding fundamental measures or machine-learning methods, but supplies no validation results, backtest, trading rules for entries and exits, or risk controls. The examples also leave implementation details unclear, including how the reversal pattern and signal-line condition are precisely defined, so users would need to resolve those choices before evaluating the screen.

Key ideas

• The screen requires a daily high-to-low range above its specified threshold.
• It combines a reversal pattern with a rising MACD signal line.
• The examples describe both indicator-formula and Python-style implementations, with a popularity-based ranking step.
• The post warns that technical-only screens may vary in quality across market conditions and sectors.
• No backtest, entry and exit plan, or risk-management method is provided.

Tags

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