A Stock Screen Combining Price Amplitude, Rounded Shape, and Positive MACD

Summary

This post proposes a stock-selection screen using daily price amplitude, a rounded price shape, MACD above its zero line, and volume above its recent average. The stated rationale is that amplitude and the rounded pattern identify active stocks, while positive MACD is intended to select an upward trend. The indicator examples translate those ideas into price-to-average and volume comparisons, although the rounded-shape description is not defined consistently enough to reproduce unambiguously.

The article gives no backtest, portfolio results, or measured risk evidence. It acknowledges that the screen is narrow, ignores company fundamentals, and may select weak stocks; it also questions MACD’s reliability. A code example contains ambiguous operator precedence and appears inconsistent with the written threshold, so implementation requires careful verification. The author suggests supplementing technical signals with fundamentals, capital-flow measures, and other indicators, but does not evaluate whether those additions improve results.

Key ideas

• The proposed screen combines price amplitude, a rounded price pattern, positive MACD, and elevated volume.
• The post treats MACD above zero as evidence of an upward trend but provides no validation of that interpretation.
• The rounded-pattern criterion is not fully defined, making consistent implementation difficult.
• The strategy description flags its narrow scope, lack of fundamental analysis, and risk of selecting weak stocks.
• The example logic should be checked carefully because its expression is ambiguous and does not clearly match the prose.

Tags

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