Combining Price Amplitude, Five-Year ROE, and Daily MACD for Stock Screening

Summary

This stock-screening proposal combines a price-amplitude threshold with positive daily MACD and a record of return on equity above 15% for five consecutive years. It pairs a technical measure of price behavior and trend with a fundamental measure intended to identify companies with sustained profitability. The document also suggests adding other technical and fundamental measures, considering industry and company characteristics, and using stop-loss or profit-taking rules to manage risk.

The article offers indicator formulas and a Python example, but no backtest, performance results, or validation of the selection rules. Its implementation details are not fully consistent: the Python example applies ROE checks to grouped data, while its sample market data and instrument reference do not clearly establish a valid stock-screening workflow. The article itself cautions that a few indicators can miss relevant market, industry, or company-specific information, so the screen should be treated as a starting point rather than a tested strategy.

Key ideas

• The screen combines daily MACD above zero and price amplitude with sustained five-year ROE above 15%.
• The proposed rationale is to pair a technical trend signal with a measure of profitability.
• The article suggests adding indicators, valuation or dividend measures, and company or industry analysis.
• It recommends risk controls but provides no tested rules or evidence of performance.
• The sample formulas and code do not establish a validated end-to-end stock-screening process.

Tags

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