Screening Stocks with Volatility, Positive MACD, and Moving Average Alignment

Summary

This stock screen combines three conditions: an amplitude measure above 1, MACD above zero, and the 20-day moving average above the 120-day average. The intended logic is to select shares with notable price movement, positive MACD status, and alignment between shorter and longer trend measures. The document also suggests checking other indicators and market context before treating screened shares as candidates.

Its explanation is qualitative and offers no performance test or evidence that the rules predict returns. It flags the subjective choice of moving-average periods and the possibility of missing short-term rebounds. The formula and Python example are references rather than a fully specified, validated implementation; the surrounding material is largely platform guidance. No transaction rules, portfolio sizing, or risk controls are defined.

Key ideas

• The screen requires amplitude above 1 and MACD above zero.
• It also requires the 20-day moving average to exceed the 120-day average.
• The document interprets these conditions as favoring volatile stocks with positive short- and longer-term trend signals.
• Moving-average periods are subjective, and the filter may miss short-term rebounds.
• Other indicators and prevailing market conditions may be used to refine the candidate list.

Tags

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