Combining Price Amplitude, a Five-Day Average, and MACD for Stock Selection
Summary
This stock screen combines three technical conditions: amplitude above one, the stock’s average price above its five-day moving average, and a positive daily MACD value. The document presents the conditions as a way to focus on short-term price action, using amplitude as a volatility filter and MACD as an indication of upward momentum. It also includes indicator references and sample selection logic, although the sample code’s data handling and condition definitions do not clearly align with every stated rule.
No backtest results, benchmark, or risk-adjusted performance evidence are provided. The article cautions that a technical screen can overlook company fundamentals, industry conditions, valuation, and unexpected events. It suggests considering those broader factors and using additional indicators for confirmation. Accordingly, the described rules identify candidates for further assessment; the document does not establish that they have predictive value or specify portfolio construction, position sizing, or exit criteria.
Key ideas
- The screen requires amplitude above one, average price above the five-day moving average, and positive daily MACD.
- Amplitude is used to represent price movement, while MACD is used to identify short-term upward momentum.
- The article flags limited attention to fundamentals, industry conditions, valuation, and unexpected events.
- It provides no backtest evidence and does not define position sizing or exit rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.