A Stock Screen Using Daily Range, a Five-Day Average, and Weekly MACD

Summary

This stock screen selects shares with a daily amplitude above the stated threshold, a closing price above the five-day moving average, and weekly MACD above zero. The article interprets the range condition as indicating movement, the moving-average filter as a short-term upward trend, and positive weekly MACD as a broader bullish signal. It suggests combining the technical screen with company fundamentals such as earnings, business prospects, and competitive position.

The post identifies overfitting and misleading price moves or news as risks, and acknowledges that technical conditions alone do not establish long-term value. It includes sample indicator and data-processing code, but no backtest, performance results, or evidence that the proposed combination is predictive. The code is explicitly presented as a reference requiring modification, and its implementation does not clearly preserve the stated weekly MACD timeframe in the sample calculations.

Key ideas

• The screen combines a daily amplitude filter, a close above the five-day moving average, and positive weekly MACD.
• The indicators are intended to capture price movement and upward direction over short and longer horizons.
• The article recommends considering fundamentals alongside the technical screen.
• It warns about overfitting and misleading market moves, and supplies no performance validation.
• The sample implementation is only a reference and does not clearly calculate MACD on weekly data.

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