A Stock Screen Using Amplitude, the Five-Day Average, and MACD

Summary

The post proposes screening stocks for amplitude above a threshold, an average price above the five-day moving average, and a negative MACD reading from two days earlier. It frames the combination as a way to find shares with volatility, price strength relative to a short moving average, and a recent MACD signal that may precede a rebound. It also advises considering company fundamentals, market conditions, liquidity, and risk controls.

The post offers no backtest or performance evidence, and it warns that the technical conditions can still select stocks that fall. Its example code appears inconsistent with the stated rules: the volatility filter uses a turnover-ratio field, the moving-average comparison is reversed from the described condition, and the prior-day MACD condition is not clearly implemented. The source therefore describes a screening idea, not a validated or reproducible trading system.

Key ideas

• The proposed screen combines a volatility threshold, a five-day moving-average condition, and a recent negative MACD reading.
• The post presents the indicator combination as a way to identify possible rebounds or upward trends.
• It cautions that technical signals alone omit fundamentals and market conditions and can still precede losses.
• The example code does not consistently implement the written screening rules.
• No backtest or evidence of trading performance is provided.

Tags

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