Screening Stocks with MACD, Price, and Volume Activity

Summary

This note outlines a daily stock screen combining a positive MACD reading, a share price below a stated ceiling, and a measure of trading activity based on the prior day’s turnover rate and the ratio of current auction volume to the previous day’s volume. It says the screen is run before the market opens and frames the volume condition as a way to identify stocks with a suitable level of activity. Sample indicator formulas and Python snippets are included, though the code’s data handling and stated screening logic do not align perfectly in every detail.

The document cautions that changing market conditions can make results unstable, and that a price cap can exclude otherwise attractive companies. It suggests adding other technical and financial indicators, including moving averages, stochastic measures, relative strength, and OBV. No backtest results or evidence of returns are supplied, so the screen should be read as a selection rule proposal rather than a validated strategy. Data freshness and the exact interpretation of the auction-volume and turnover calculation also matter for implementation.

Key ideas

• The screen combines positive MACD, a price ceiling, and a turnover-volume activity condition.
• The stated process selects stocks before the market opens each trading day.
• The sample formulas and Python implementation may not express the screening rules identically.
• The document notes that market changes and a fixed price ceiling can limit the screen.
• It proposes adding further technical and financial indicators, but reports no strategy performance evidence.

Tags

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