Screening Stocks with High Amplitude, Positive MACD, and Lower Lows

Summary

The document describes a short-term stock screen combining three conditions: amplitude above one, MACD above the zero line, and today’s low below yesterday’s low. It interprets amplitude as a sign of volatility, positive MACD as a favorable signal, and the lower low as evidence of market interest and buying pressure. It provides example indicator expressions and a partial Python illustration, but does not show backtest results or establish that these conditions predict gains.

The author flags that the screen relies on technical indicators and market sentiment, leaving company fundamentals out of the initial filter. A short-term rise could be followed by a pullback, and broader market moves or news can affect outcomes. Suggested improvements include reviewing financial condition, earnings growth, industry prospects, longer data histories, and price trends. These additions are recommendations rather than tested rules, so the document does not specify a complete entry, exit, or risk-management method.

Key ideas

• The screen combines amplitude above one, MACD above zero, and a lower daily low than the prior session.
• The document presents the conditions as signals of volatility, technical strength, and buying interest.
• It gives sample indicator expressions and partial Python code but provides no performance evidence.
• The author recommends adding fundamental, industry, and longer-term price analysis.
• Short-term reversals, market risk, and news can undermine the screen.

Tags

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