MACD and Volume-Ratio Stock Screening Ranked by Attention

Summary

This article describes a daily stock screen that selects shares with the MACD line above zero, ranks them by individual stock popularity, and keeps only those with a volume ratio between 1.5 and 6. It says the screen is run after the market opens. The accompanying indicator formulas define MACD from the difference between 12-period and 26-period exponential moving averages, and volume ratio as current volume divided by its 26-period simple moving average. A Python example applies related filters to minute data and sorts candidates by turnover rate, though that ranking differs from the popularity ranking described in the screen.

The article argues that MACD, popularity, and relative volume can help identify active stocks while limiting unusually large volume surges. It also cautions that using only these measures may yield few candidates, concentrate risk, omit rising stocks, and respond poorly to changing market conditions. It gives no backtest or performance evidence, and recommends adding industry and fundamental checks and reassessing the approach through testing and live use.

Key ideas

• The screen selects stocks with MACD above zero and a volume ratio between 1.5 and 6.
• Candidates are ranked by stock popularity, with selection taking place after the open.
• The example defines MACD using 12-period and 26-period exponential moving averages.
• The article warns that a narrow indicator set can concentrate risk and miss opportunities.
• It recommends adding industry and fundamental context and evaluating the strategy over time.

Tags

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