Screening Stocks by Daily Range, MACD, and Revenue Growth

Summary

This stock screen combines three filters: a daily high-to-low range greater than 1%, MACD above the zero line, and revenue in 2021 more than 1.1 times revenue in 2018. The rationale is to pair price activity and a positive MACD condition with a multi-year measure of business growth. The document also sketches indicator formulas and a Python-based implementation that ranks qualifying stocks by turnover.

The approach is presented as a screening rule, not a tested trading system; no portfolio returns or other performance evidence are supplied. The author warns that revenue alone can be misleading, may be adjusted by companies, and does not account for industry direction or broader fundamentals. The suggested improvement is to add fundamental and industry factors. The code example's data fields and calculations may not exactly implement the stated screening conditions, so they would need review before use.

Key ideas

• The screen requires a daily high-to-low range above 1% and MACD above zero.
• It compares 2021 revenue with 2018 revenue and requires a ratio above 1.1.
• The example implementation ranks qualifying stocks by turnover.
• The document cautions that revenue growth may be manipulated and does not capture industry or broader fundamental conditions.
• No backtest results or portfolio performance are reported.

Tags

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