Screening Stocks with Positive MACD, Low Price, Volume, and a Gap Up

Summary

This note presents a daily equity screen combining a positive MACD condition with a share price below 12, volume above 10,000 lots, and an opening price above the prior close. It describes selecting candidates around 10 a.m. and provides indicator and Python examples as illustrations. The intended idea is to combine a momentum signal with price, trading activity, and a positive opening gap to identify stocks showing strength.

The document provides no backtest, return data, or evidence that the screen is predictive. It warns that short-term signals can be noisy and vulnerable to extreme events. It suggests adding other volume indicators, fundamentals, and market context, as well as stop-loss and take-profit rules. The implementation examples would require data and timing checks before use, especially because a screen using the current day's volume at 10 a.m. depends on how that volume is measured and updated.

Key ideas

• The screen combines positive MACD with a low share price, high volume, and an opening gap above the prior close.
• It is intended to identify short-term strength through both price and volume conditions.
• The document provides illustrative code but no performance evidence or backtest results.
• Short-term signals can be noisy, and the note recommends broader filters and risk controls.

Tags

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