Screening Stocks by Weekly MACD, Price Range, and Turnover

Summary

This stock-selection screen combines three technical and trading-activity filters: price range greater than one percent, weekly MACD above zero, and turnover between three and twelve percent. The article interprets the range condition as evidence of movement, positive weekly MACD as an upward tendency, and the turnover band as a way to favor stocks with trading activity while avoiding very low turnover. It gives example indicator logic and a Python outline using market data and TA-Lib.

The document does not report a backtest, returns, or comparisons against a benchmark. It acknowledges that the thresholds may fail to capture liquidity well and that a screen based only on technical variables can miss company fundamentals. It suggests adding fundamental measures, capital-flow information, other pattern indicators, and further liquidity measures. The example implementation also uses a limited date window and a subset of stock codes, so it does not establish that the rule is a complete or validated investment process.

Key ideas

• The screen requires a price range above one percent, positive weekly MACD, and turnover within a stated band.
• The article presents the range and MACD filters as measures of activity and upward momentum.
• It treats turnover as a liquidity consideration but notes that the chosen band may be inadequate.
• The screen omits fundamental analysis and has no reported performance validation.
• The example code illustrates data filtering but uses limited coverage and should not be read as a tested strategy.

Tags

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