Combining Volatility, Weekly MACD, Moving Averages, and Valuation Filters

Summary

This stock screen combines a daily amplitude threshold, a positive weekly MACD-style signal, and moving-average alignment with valuation and dividend filters. Its final stated conditions require amplitude above 1, a weekly positive bar, upward separation of the daily averages, price-to-earnings below 30, price-to-book below 3, and dividend yield above 2%. The article includes formula and Python examples, though their moving-average conditions are not fully consistent: the formula describes a crossover-like change, while the Python snippet requires the 10-day average to be above the 5-day average but within 2% of it.

The author characterizes the initial technical-only screen as incomplete and suggests adding fundamental factors and other indicators. No backtest, benchmark, return, or risk statistics are reported. The selection rules are examples rather than validated investment guidance, and the code references platform-specific data functions and should be checked for consistent indicator definitions and units before use.

Key ideas

• The screen combines amplitude, weekly MACD direction, and moving-average alignment.
• The final rules add price-to-earnings, price-to-book, and dividend-yield thresholds.
• The formula and Python examples express moving-average conditions differently.
• The article gives no empirical performance evidence and flags its technical-only basis as a limitation.

Tags

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