Screening Stocks by Volatility, MACD, and Recent Limit-Up Moves

Summary

This stock-selection rule combines three conditions: daily amplitude above a threshold, MACD above or crossing the zero line, and more than two limit-up sessions during the previous ten trading days. The note frames amplitude as a volatility measure, MACD as a momentum or trend signal, and repeated limit-ups as a way to identify recently popular stocks. It includes formula and code examples, but no empirical results or backtest.

The document cautions that concentrating on recent limit-up activity can exclude companies with strong fundamentals or other sources of upside. It recommends adding price-volume analysis and other technical measures, without specifying how to combine them. The strategy is therefore a short-term momentum screen rather than a fully defined trading system: it does not state entry timing, exit rules, position sizing, transaction costs, or risk controls. Its examples also require careful validation before use, since the code references formula-style operations that are not defined in the sample.

Key ideas

• The screen combines price amplitude, MACD position, and recent limit-up frequency.
• It uses a ten-session lookback for counting limit-up moves.
• The approach seeks volatile stocks with positive momentum and recent market attention.
• The note proposes adding price-volume and technical analysis, but does not define those filters.
• It provides no backtest, exit rules, or risk-management method.

Tags

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