Combining Stock Amplitude, Weekly MACD, and Fundamental Filters

Summary

This stock-screening proposal starts with three technical conditions: amplitude above 1, a positive weekly MACD histogram, and no limit-up session the previous day. It frames the screen as a way to find volatile shares with a positive weekly signal while avoiding stocks that have just made an unusually strong move. The author then adds valuation and profitability filters: price-to-earnings below 20, price-to-book below 3, and return on equity above 10%.

The post offers illustrative formula and Python snippets, but reports no backtest, portfolio returns, or evidence that the thresholds are predictive. Its own risk discussion says the original technical screen omits company fundamentals and sector context; the expanded version addresses some of that gap. Implementation details are not fully consistent: the Python example uses daily MACD rather than a weekly series and checks suspension and special-treatment status instead of directly testing the prior day’s limit-up condition. The screen therefore needs careful data and rule validation before use.

Key ideas

• The initial screen combines high daily amplitude, a positive weekly MACD histogram, and exclusion of prior-day limit-up stocks.
• The expanded proposal adds valuation and profitability thresholds to the technical filters.
• The post warns that technical-only selection omits fundamentals and industry context.
• The examples are illustrative and contain differences between the stated rules and the Python implementation.
• No backtest or performance evidence is provided.

Tags

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