Equity Screening with Daily Range, 10-Day Gain, and Rising DEA
Summary
This stock-screening rule combines three conditions: daily amplitude above 1%, a positive gain over ten days below 35%, and a rising DEA, the signal line associated with MACD. The article frames the range filter as a way to find volatile shares and the bounded gain as a way to favor stocks that have advanced without an extreme recent run. A rising DEA is presented as evidence of improving price momentum.
The post gives a Python example using price data and a MACD calculation, but it does not report a backtest, performance statistics, or clear execution rules. It warns that relying on DEA alone omits other technical measures and that market and company fundamentals remain relevant. The screening logic is therefore a basic technical filter, not evidence of a validated trading strategy; the article suggests adding other indicators and fundamental or industry analysis.
Key ideas
- The screen requires daily amplitude above 1% and a ten-day return between 0% and 35%.\nIt selects stocks whose DEA value is rising.\nThe article offers an implementation example but no performance evaluation.\nIt cautions that technical filters omit market, company, and other indicator risks.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.