Screening Stocks with Weekly MACD, Daily Range, Return, and Valuation Filters

Summary

This article presents an equity screen combining daily amplitude, a positive weekly MACD reading, a recent price-change band, and a valuation filter. Its final stated logic additionally requires price-to-book between 1 and 5, while the indicator formula and example Python refer to a price-to-earnings field instead. The examples describe calculating the weekly MACD from weekly closes and evaluating an average of recent daily changes, then keeping stocks that satisfy all criteria.

The article explains that amplitude serves as a volatility measure and that weekly MACD is intended to identify favorable technical conditions. It gives sample formulas and code but no backtest results or evidence of predictive value. It also notes that the screen omits broader fundamentals and that relative price changes can be affected by market-wide moves. The mismatch between the stated price-to-book condition and the price-to-earnings implementation, along with details of the return calculation, should be resolved before reproducing the screen.

Key ideas

• The screen combines daily amplitude, weekly MACD, recent price changes, and a valuation threshold.
• Its stated final rule uses price-to-book, while the examples use price-to-earnings.
• The recent-return filter is presented as a five-day average with an upper and lower bound.
• Market-wide price moves and omitted fundamental data may weaken the selection logic.
• The article provides no backtest or performance evidence for the screen.

Tags

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