Screening Equities with Price Amplitude, MACD, and Profit Growth

Summary

This stock screen combines a daily price-amplitude threshold, a MACD condition above the zero line, and year-over-year growth in net profit attributable to parent-company shareholders. The stated profit-growth range is above 20% and up to 100%. The rationale is to pair a technical condition with a band of positive earnings growth, seeking stocks with both price activity and improving results.

The note flags a key limitation: net-profit growth alone does not capture financial structure, ownership, industry trends, or broader operating conditions. It recommends combining those factors in a fuller review. It also includes example indicator and data-filter logic, though the examples do not align perfectly: the Python snippet uses opening price for amplitude and adds a PE ceiling, while the stated screen and indicator formula use different definitions. No backtest, universe details, rebalance rules, or evidence of returns are provided, so this should be treated as a screening idea rather than a validated strategy.

Key ideas

• The screen requires price amplitude above 1%, MACD crossing above zero, and parent-attributable net-profit growth above 20% and no more than 100%.
• It combines a technical momentum signal with an earnings-growth filter.
• Profit growth alone may omit important financial, ownership, and industry risks.
• The example implementation differs from the stated criteria and adds a PE filter, while no performance validation is supplied.

Tags

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