Stock Screen Using Price Amplitude, Positive MACD, and Position Growth

Summary

This stock selection rule combines a daily amplitude above 1%, MACD above its zero line, and a reported position increase exceeding 5%. The accompanying explanation treats amplitude as a sign of trading movement, positive MACD as a bullish technical condition, and position growth as a possible indication of incoming capital. It includes formula and Python examples intended to illustrate how to combine the filters.

The post provides no backtest or measured evidence that these conditions identify profitable trades. It cautions that the screen may be overfit to particular market regimes and can miss company fundamentals. It suggests considering additional fundamental measures and loosening or tightening volume, market-capitalization, and price-movement conditions. The sample implementation does not resolve how “position growth” should be measured consistently, so its data definition and calculation would need scrutiny before use.

Key ideas

• The proposed screen requires amplitude above 1%, MACD above zero, and position growth above 5%.
• The post interprets positive MACD and increased positions as potentially bullish signals.
• It warns that the conditions may be overfit to a particular market environment.
• The screen does not account for company fundamentals.
• The sample code leaves the position-growth calculation and data alignment open to verification.

Tags

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