Combining Daily Amplitude, Main-Force Control, and Weekly MACD

Summary

This post proposes screening stocks with daily amplitude above 1, an indication of main-force control on the previous day, and weekly MACD above zero. It presents the filters as a technical approach intended to find stocks with potential for short-term gains. The accompanying indicator notes define the MACD components using short and long exponential moving averages and a signal line; sample Python code adds other filters and attempts to infer trading activity from tick data.

The post acknowledges that the screen depends heavily on technical signals, that MACD may lag, and that market behavior may not follow the indicator. It recommends considering fundamentals, industry trends, and additional indicators, while adjusting to market conditions and controlling risk. The code is illustrative and contains details that do not clearly implement the stated screen consistently, including using data for a selected stock in places where a full-universe process would be needed. No historical test or performance results are provided, so the method remains an unvalidated selection hypothesis.

Key ideas

• The stated screen requires daily amplitude above 1, prior-day main-force control, and weekly MACD above zero.
• MACD is described through short and long exponential averages and a smoothed signal line.
• The article warns that technical indicators can lag and may miss fundamental or market-wide influences.
• The sample code adds other filters and does not clearly implement the written screen consistently.
• The post provides no performance evidence and calls for risk controls and broader analysis.

Tags

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