Screening Stocks with Price Range, MACD, and Asset-Size Filters

Summary

The article proposes selecting stocks whose prior-session price range exceeds one percent, whose MACD crosses above zero, and whose reported total assets exceed 200 million. It presents the range as a volatility filter, the MACD crossing as a bullish momentum condition, and the asset threshold as a way to exclude smaller firms. It also suggests loosening the size filter and considering valuation, dividends, portfolio rotation, or asset allocation.

The document provides formula and Python examples, but no backtest, returns, or evidence that these filters improve results. Its code is illustrative and has implementation ambiguities, including how the range is calculated and whether the MACD condition represents a fresh crossover. The article notes that strict size limits may exclude promising smaller companies and recommends combining the screen with other analysis. The proposed conditions should therefore be read as a screening outline rather than an established strategy.

Key ideas

• The proposed screen combines a prior-session range above one percent, a MACD move above zero, and a total-assets threshold.
• The article interprets the range as a volatility filter and MACD as a bullish momentum signal.
• It cautions that a strict asset-size cutoff can exclude smaller companies with potential.
• The examples have implementation ambiguities and the document supplies no performance evidence.

Tags

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