MACD, Moving Averages, and Volume Ratio Stock Screen
Summary
This note outlines a stock screen combining MACD above zero, an upward price trend, and a volume ratio between 1.5 and 6. It describes the volume ratio as current volume relative to an average over recent sessions and includes formula and Python examples. A sorting rule ranks candidates by daily price change from lowest to highest.
The document gives no backtest or evidence that the screen predicts returns. It flags that the thresholds are subjective, volume ratio alone does not capture liquidity, and technical filters may omit fundamental information. There is also a mismatch in the examples: the prose calls for upwardly diverging moving averages, while the formula and Python code use different moving-average comparisons; the listed MACD calculation and volume scaling may also require checking before implementation. The method should therefore be treated as a screening template rather than a validated strategy.
Key ideas
- The screen combines positive MACD, an upward trend condition, and a volume ratio bounded between 1.5 and 6.\nThe note proposes sorting selected stocks by daily return in ascending order.\nIts examples do not consistently implement the described moving-average condition.\nNo performance results are supplied, and the volume thresholds are acknowledged as subjective.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.