Screening Stocks for Volatility, Limit-Down Opens, and Positive MACD

Summary

The document proposes an equity screen combining three conditions: amplitude greater than one, a prior day 9:15 matching price at the limit-down level, and MACD above zero. It presents the first condition as a measure of price movement, the limit-down match as a sign of unusual price behavior, and positive MACD as an indication that price is above a trend reference. It includes formula and Python-like examples for selecting stocks, though the examples rely on platform-specific functions and are not independently validated.

The screen is a technical filter, not a complete trading strategy: it gives no entry, exit, holding-period, or position-sizing rules, and reports no backtest or performance evidence. The author notes that price-only screening can misjudge company value and suggests adding fundamental measures or other indicators. The stated conditions and their interpretations should therefore be treated as a hypothesis to test with reliable data, especially because the matching-price condition depends on market-specific terminology and data availability.

Key ideas

• The screen combines amplitude, a prior session limit-down matching price, and MACD above zero.
• The author interprets positive MACD as evidence of an upward trend position.
• The examples use platform-specific functions and are not validated performance results.
• The screen omits company fundamentals and requires further testing before use.

Tags

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