Stock Screening with Amplitude, MACD, and Rising KDJ

Summary

This document proposes screening stocks for price amplitude above a threshold, MACD above zero, and a positive change in the KDJ K value. It argues that amplitude can capture movement, MACD can indicate positive trend conditions, and rising K may reflect strengthening upward momentum. Example formulas and Python code illustrate the intended filters, though the written formula and code do not express every condition in precisely the same way.

The document warns that technical indicators alone omit company fundamentals and can misclassify a stock if KDJ momentum stalls. It suggests incorporating financial health, industry prospects, and weighted combinations of factors, but does not define how to weight them or report a backtest. The screen is therefore a candidate-selection idea rather than a complete trading system: it gives no position sizing, execution, or exit rules, and offers no evidence of profitability.

Key ideas

• The proposed screen combines amplitude, MACD above zero, and a positive recent KDJ K change.
• The document interprets the indicators as measures of movement, trend, and short-term momentum.
• It cautions that indicator-only selection ignores fundamentals and may misread a stall in KDJ.
• It proposes adding financial and industry factors but gives no weighting method or validation results.
• No position-sizing, execution, or exit rules are specified.

Tags

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