Active-Stock Screening with Price Range, Volume Ratio, and Negative MACD

Summary

This short-term stock screen combines a daily high-low range of at least 1% with a volume ratio between 1.5 and 6 and a negative MACD reading from two days earlier. The post frames the range and volume conditions as a way to find active but not excessively traded stocks, while the lagged negative MACD is presented as a possible setup for a rebound from weakness. The stated final rule repeats these thresholds and shows an indicator formula.

The article gives no backtest or outcome data, so its claim that the added MACD condition improves reversal selection is not substantiated there. It warns that the screen may admit low-quality stocks, MACD reacts with delay, and one lagged reading does not capture the indicator’s path. It recommends adding technical, fundamental, and industry context or checking a sequence of MACD readings. The supplied Python example also appears inconsistent with the stated volume-ratio definition, making implementation checks necessary.

Key ideas

• The screen uses a minimum 1% intraday range, a volume ratio from 1.5 to 6, and negative MACD from two days earlier.
• The author interprets the activity filters as a way to find liquid short-term candidates and the MACD condition as potential rebound context.
• The post gives no empirical results to support the proposed reversal advantage.
• MACD lag, isolated readings, and possible low-quality selections are identified as limitations.
• The sample implementation may not calculate the stated volume ratio correctly.

Tags

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