Screening Stocks with Amplitude, MACD, and Bollinger Bands

Summary

This post describes a stock screen that combines a prior-period price-amplitude condition with a MACD signal above the zero line and a closing price between the Bollinger middle and upper bands. It frames the amplitude filter as selecting more volatile stocks, and the MACD and band conditions as indicators of strength. Formula references and a Python sketch show how the author intends to express the filters, though the sketch relies on indicator functions that are not defined in the document.

The post notes that the screen may overlook other potential candidates and that trading stocks remains risky. It suggests combining the technical conditions with volume-price measures or financial indicators to improve selection. The final description mentions adding further filters without specifying them. No historical test results, benchmark, trade rules, or evidence for predictive accuracy are provided, so the proposed interpretation and thresholds remain unvalidated.

Key ideas

• The screen combines price amplitude, MACD relative to zero, and the close’s position within Bollinger Bands.
• The stated band condition places the close between the middle and upper bands.
• The post proposes adding volume-price or financial measures as further filters.
• It provides no backtest results or evidence that the conditions predict returns.

Tags

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