Screening Stocks by Daily Drawdown, Amplitude, and Weekly MACD

Summary

This stock screen combines a daily price-movement filter with a weekly MACD condition. It selects shares whose amplitude exceeds 1, whose largest decline today lies between 4% and 5%, and whose weekly MACD is above its signal line with a positive increase from the prior bar. The document includes example implementations and describes the screen as a way to identify stocks with short- and longer-term upward potential.

The post offers no backtest, performance figures, or evidence that the selected conditions predict returns. Its risk discussion notes that the screen omits company fundamentals and that a weekly signal may respond slowly to short-term moves. It suggests combining technical and fundamental inputs and applying risk controls and portfolio allocation. The described conditions specify selection only; they do not define entry timing, exits, position sizing, or a complete trading system.

Key ideas

• The screen requires daily amplitude greater than 1 and a daily maximum decline between 4% and 5%.
• It adds a weekly MACD condition requiring the indicator to be above its signal and rising from the prior bar.
• The post provides example code, but reports no backtest or measured trading results.
• The author identifies missing fundamental analysis and limited sensitivity to short-term moves as risks.
• The selection rules do not specify trade exits or position sizing.

Tags

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