MACD and DEA Stock Screening with a Historical Volatility Filter

Summary

This stock screen combines a positive MACD condition with a rising signal line, then filters for shares whose high-to-low range over a recent lookback exceeds a stated threshold. The article frames the approach around stocks with upward technical momentum and meaningful past price movement. It also suggests adding fundamental measures and market or industry context, and extending the historical sample to reduce dependence on a narrow period.

The document provides indicator definitions and a sample implementation, but no backtest results or evidence that the screen predicts returns. Its explanation has inconsistencies: the title mentions a particular calendar year, while the sample code uses a rolling lookback, and the prose discusses the DEA rising condition while the code compares MACD lines. The suggested volatility filter and technical criteria therefore need clarification and independent testing. The article itself notes risks from relying on indicators and from overfitting a time window.

Key ideas

• The proposed screen selects stocks with MACD above its zero line and a rising DEA signal line.
• A historical high-to-low range condition is used to identify stocks with substantial price movement.
• The article recommends supplementing technical signals with fundamentals and market or industry factors.
• The description and sample code do not express the criteria consistently, so the screen needs validation.

Tags

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