Stock Screening with Amplitude, MACD, and Relative Volume

Summary

The screen selects stocks with amplitude above 1, MACD above the zero axis, and a volume ratio greater than 1.5 but less than 6. The document interprets these filters as seeking price movement, a positive MACD condition, and trading volume elevated relative to a recent average. It gives formula references for amplitude, a MACD zero-line cross, and volume divided by a five-period volume average. It then proposes adding strong fundamental measures to the selection criteria.

The discussion cautions that relying too heavily on volume ratio can lead investors to overlook company fundamentals and potentially attractive stocks. It does not define how to judge fundamental quality, specify a holding or exit rule, or provide backtest or live-trading evidence. The included code and platform workflow are presented as implementation references, but the Python example uses indicator-style functions without showing their definitions or a complete data-processing pipeline. The screen is therefore a candidate-selection concept, not a fully specified or validated strategy.

Key ideas

• The proposed screen combines amplitude above 1, MACD above zero, and a volume ratio between 1.5 and 6.
• The volume ratio compares current volume with a five-period average in the provided formula reference.
• The document recommends adding fundamental measures to reduce reliance on technical filters alone.
• It warns that overemphasis on volume may cause investors to miss stocks with stronger fundamentals.
• No backtest results, trading exits, or complete fundamental selection rules are provided.

Tags

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