Screening Stocks by Price Range, Turnover, and Lagged MACD

Summary

This stock-screening recipe combines a daily high-low range greater than 1, prior-day actual turnover between 3% and 28%, and a MACD reading below zero from two days earlier. The article frames the lagged MACD condition as a way to identify stocks that may be near a bottom before an upward move, then supplies indicator-formula and Python examples as implementation references.

No backtest results or evidence are presented to show that the filters improve returns or reduce risk. The article notes that MACD can lag price action and may exclude stocks that are beginning to rise; it also warns that the indicator says nothing about company fundamentals. The examples leave important details ambiguous: the formula labels a ratio as turnover, uses inconsistent timing across conditions, and the Python sketch uses data for one named stock to calculate historical filters. The screen should therefore be read as a proposed set of selection conditions, not a validated trading system, and the article recommends combining technical signals with other indicators or fundamental criteria.

Key ideas

• The screen combines a price range above 1, prior-day turnover from 3% to 28%, and a MACD value below zero from two days earlier.
• The stated rationale is to find stocks with activity that may precede a rise.
• The document provides formula and Python examples but no performance evaluation.
• MACD may lag market moves, and technical indicators do not capture company fundamentals.
• The examples contain timing and turnover-definition ambiguities that require clarification before use.

Tags

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