A Stock Screen Using Intraday Range, Positive Return, and Weekly MACD

Summary

This note outlines a technical screen for stocks with a daily high-to-low range greater than 1% of the previous close, weekly MACD above zero, and a positive return for the current day. The conditions combine price movement within the day, a positive short-term result, and a weekly trend filter. The document includes formula and Python examples, but the examples use platform-specific conventions and may need correction or adaptation before use.

No backtest results, sample, or performance statistics are provided, so the proposed screen’s effectiveness is not established. The note says it excludes company fundamentals, industry conditions, and broader market or policy factors. These omissions can leave selections exposed to volatility, company disclosures, and changing market conditions. It recommends combining technical signals with fundamental and market context, while also setting risk controls. The rules are best understood as a screening concept that requires independent validation, rather than a demonstrated source of returns.

Key ideas

• The screen requires a daily high-to-low range greater than 1% of the previous close.
• It also requires weekly MACD above zero and a positive daily return.
• The examples describe implementation but may depend on platform-specific data and indicator conventions.
• The document provides no evidence from backtesting or live results.
• It identifies the lack of fundamental and market context as a limitation.

Tags

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