Rising Lows and Positive Daily MACD for Stock Screening

Summary

This equity screening rule looks for stocks with an amplitude above 1, successively higher bottoms, and a positive daily MACD reading. The document frames the conditions as a way to combine price movement with an indicator of short-term trend direction and strength. It also provides sample formulas and partial Python logic for applying the filters to historical daily price data.

No backtest, return data, or comparison with a benchmark is presented, so the screen’s effectiveness is unproven. The discussion notes that a short-term price focus can exclude fundamentally promising stocks during weak periods, MACD may be less suitable for rapidly moving shares, and the rule does not assess company fundamentals. The sample implementation also differs from the stated amplitude condition, making the intended calculation worth checking. Suggested additions include volume, moving averages, other technical measures, and fundamental indicators, but these are proposals rather than evaluated improvements.

Key ideas

• The screen requires amplitude above 1, rising bottoms, and daily MACD above zero.
• The rule combines price structure with a momentum-style technical indicator.
• The document provides example implementation approaches but no performance evidence.
• The strategy can miss stocks with weak short-term charts and does not evaluate fundamentals.
• The sample code’s amplitude calculation differs from the written rule and should be verified.

Tags

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