Screening Stocks by Amplitude, MACD, and Recent Limit-Up Activity

Summary

This note proposes screening equities for daily amplitude above 1, a MACD reading above its zero line, and at least two limit-up events within a 500-day lookback. Its rationale is that amplitude identifies active stocks, MACD indicates positive momentum, and repeated limit-ups may reflect market attention. It recommends adding fundamental and industry analysis to make the screen more selective.

The document includes indicator expressions and a Python sketch, but provides no backtest or measured results. The implementation details do not consistently match the stated criteria: the limit-up count expression uses a strict threshold greater than two, while the prose says at least two, and the sample’s limit-up test is a simplified price comparison. The MACD expression appears to detect a zero-line crossing rather than simply remain above zero. These definitions, along with market-specific limit rules and adjusted prices, need verification before use. The note also cautions that activity and technical signals alone omit company and sector risks.

Key ideas

• The proposed screen combines amplitude, a MACD zero-line condition, and repeated limit-up events over a 500-day lookback.
• The note treats limit-up frequency as a proxy for market attention, not as proof of investment value.
• The code’s strict count threshold differs from the prose requirement of at least two events.
• The example limit-up test and MACD condition need clarification before implementation.
• Fundamental and industry analysis are suggested as additional filters.

Tags

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