Screening Stocks by Price, MACD, and Daily Trading Range

Summary

The document describes a stock screen requiring daily price amplitude above a threshold, MACD above its zero line, and a share price below a stated level. It interprets the amplitude condition as selecting volatile stocks and the MACD condition as indicating positive momentum, while treating the price limit as a low-price filter. It also suggests ranking qualifying stocks by a separate market-interest measure.

The screen is presented as speculative and does not account for company fundamentals or industry outlook. The document recommends adding those considerations, but it does not define a fundamental scoring method or provide empirical evidence that the screen is profitable. Its indicator references and code example are incomplete or platform-dependent, and the price cutoff alone does not establish that a stock is undervalued. No backtest or trading results are reported.

Key ideas

• The screen combines a daily amplitude threshold, a positive MACD condition, and a share-price ceiling.
• The proposed interpretation is that the rules seek volatile stocks with positive momentum and low nominal prices.
• A market-interest measure is suggested for ranking the screened stocks.
• The document warns that the screen is speculative and omits fundamental and industry analysis.
• No backtest evidence is provided, and a low share price does not by itself demonstrate undervaluation.

Tags

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