Screening Stocks by Trading Range, MACD, and Prior Limit-Up Days

Summary

The post proposes a short-term stock screen using three conditions: daily amplitude above 1, a negative MACD value from two days earlier, and at least two limit-up moves during the prior 500 days. It combines a technical indicator with recent price behavior, treating the history of limit-up sessions as a way to identify stocks with notable past movement. The article includes formula and Python examples intended to illustrate selection from daily market data.

The post cautions that limit-up counts alone do not establish a stock's value or future prospects. Such counts may vary with share price and company size, and the screen can miss fundamental information. It suggests adding financial, momentum, or sentiment measures, then using statistical analysis and backtesting to refine the conditions. No performance results are presented. The examples also do not clearly demonstrate the full stated lookback and signal timing in every implementation, so the precise rules would need to be validated before use.

Key ideas

• The proposed screen combines amplitude above 1, a negative MACD reading from two days earlier, and at least two limit-up sessions over 500 days.
• The article presents the rule as a short-term technical and price-action selection method.
• It notes that limit-up frequency can be an incomplete and size-sensitive measure of market behavior.
• Fundamental, momentum, and sentiment information are suggested as possible additions.
• The post provides no performance evidence, and its code examples require validation against the written conditions.

Tags

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