Screening Stocks with Recent Gains, Price Range, and MACD

Summary

This post presents a short-term stock selection screen combining price movement and a MACD condition. It describes selecting equities with a daily range threshold, a positive but capped ten-day return, and a negative MACD reading from two days earlier. The accompanying explanation interprets the range and return filters as signs of recent strength, while the lagged MACD condition is intended to identify stocks that may be recovering after a pullback. It also suggests adding company fundamentals, earnings, sector activity, and other technical signals before making a decision.

The document provides indicator formulas and a Python example, but the code's conditions do not cleanly match the stated screen, and it reports no backtest or performance evidence. It cautions that short-term signals can lag and may overlook fundamentals or longer-term value. Since the post gives no universe definition, trading rules, holding period, transaction cost assumptions, or risk controls, the screen is best treated as an unvalidated idea rather than a complete strategy.

Key ideas

• The proposed screen combines a daily price range filter, a positive capped ten-day return, and a lagged negative MACD reading.
• The author interprets recent gains as strength and the MACD condition as a possible post-pullback recovery signal.
• The post recommends considering fundamentals, earnings, sector activity, and other indicators alongside the screen.
• The supplied example code does not clearly implement every stated condition in the same way.
• No performance test is presented, and the post notes that short-term signals can lag and carry risk.

Tags

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