Screening Beverage Stocks With MACD and Daily Range Filters

Summary

This stock-selection note combines an industry filter described as beverage and alcohol imports and exports with a daily amplitude threshold above 1 and a MACD condition above the zero line. Its indicator reference expresses the MACD requirement as a zero-line cross and identifies the industry through a classification code. The accompanying Python example instead uses beverage manufacturing classifications, calculates amplitude from high, low, and open prices, and ranks a trade-related series. These differences mean the examples do not clearly operationalize one consistent strategy.

The note frames the approach as combining sector membership with technical strength, but gives no backtest, performance evidence, entry or exit rules, or risk controls. It cautions that the selection ignores company fundamentals and financial measures, and that removing an upward DEA condition could admit stocks in short-term declines. It recommends combining industry, financial, and technical factors. The strategy's unusual industry label and divergence between stated criteria and sample code make the intended data and implementation worth validating before use.

Key ideas

• The proposed screen uses a beverage-related industry filter, amplitude above 1, and MACD above zero.
• The indicator formula describes the MACD condition as crossing the zero line.
• The Python example uses different industry and amplitude definitions, creating ambiguity about implementation.
• No performance evidence, trade management rules, or risk controls are provided.
• The author notes that fundamentals are omitted and that removing an upward DEA condition may admit declining stocks.

Tags

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