Equity Screening with Daily Drawdown and Weekly MACD

Summary

This post presents a stock screen requiring amplitude above one, a daily maximum decline between four and five percent, and weekly MACD above its zero line. The combination is intended to pair a volatile or sharply declining daily move with a positive longer-term trend filter. The article provides indicator and Python examples, though the examples include additional price and volume conditions that are not clearly aligned with the headline screen.

No backtest, return data, or comparison with alternative rules is provided. The author notes that the screen relies heavily on technical signals and may overlook fundamentals or miss expensive companies with durable growth. The suggested additions, such as company data or value and growth considerations, are not tested. The implementation references also leave ambiguity about the exact amplitude and decline calculations, so the stated rules may not be reproducible as written.

Key ideas

• The stated screen combines amplitude above one, a daily decline between four and five percent, and weekly MACD above zero.
• The weekly MACD condition acts as a longer-term trend filter alongside daily price conditions.
• The implementation examples add conditions that do not clearly match the headline criteria.
• The post supplies no performance evidence and acknowledges that technical-only screening can omit fundamental information.

Tags

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