Metaverse Stock Screening with Chart Patterns and Weekly Momentum Signals

Summary

This note proposes screening stocks associated with the metaverse theme using a rounded-bottom chart pattern and a positive weekly candlestick signal. Its expanded version adds a KDJ condition, a weekly moving-average crossover, a MACD signal, and a measure of limit-up stock concentration. It gives formula and Python examples for several indicators, while leaving the rounded-bottom definition to be specified by the researcher.

The rationale is to combine a thematic universe with price-pattern and trend signals. The article cautions that weekly indicators may be affected by market volatility and may miss longer-term trends; it recommends combining more indicators to improve robustness. The examples do not establish that the signals work: there is no reported backtest, performance comparison, or operational definition for every component. In particular, the custom pattern and concentration measure require clear data definitions, and the indicators would need to be evaluated for look-ahead bias and out-of-sample behavior before use.

Key ideas

• The initial screen combines metaverse theme membership, a rounded-bottom pattern, and a weekly positive candle signal.
• The expanded screen adds KDJ, a weekly moving-average crossover, MACD, and limit-up concentration.
• The rounded-bottom pattern needs a researcher-defined measure.
• The article notes that weekly signals can miss longer-term trends and supplies no performance evidence.

Tags

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