Combining Price Amplitude, Convertible Bond Links, and MACD for Stock Screening

Summary

This stock-screening proposal combines a daily price-amplitude condition, the presence of an outstanding convertible bond name, and a positive MACD reading. The text frames positive MACD as a way to find stocks with upward momentum and presents a formula and Python example intended to implement the filters. It also suggests supplementing the screen with indicators such as RSI or KDJ and fundamental measures such as valuation ratios.

The document acknowledges that MACD is based on historical prices and can lag, producing missed or false selections. It offers no backtest, benchmark, or evidence that the combined conditions predict returns. The sample implementation also appears inconsistent with the stated stock-level rule: it retrieves MACD for a broad market index, while the amplitude condition is not clearly applied. Those issues mean the examples need correction and validation before use. The proposal is best understood as an untested technical screen rather than a complete trading system.

Key ideas

• The proposed screen combines price amplitude, a convertible-bond name, and MACD above zero.
• The rationale treats positive MACD as evidence of an upward price trend.
• The document warns that MACD can lag and that threshold filters may miss or misclassify stocks.
• It suggests adding other technical or fundamental measures for a broader screen.
• No performance test is provided, and the sample implementation may not apply the stated conditions consistently.

Tags

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