Stock Screening with Amplitude, Positive MACD, and a Weekly Moving Average Cross

Summary

This note presents an equity selection rule that combines daily amplitude above 1, a MACD condition above zero, and a five-period moving average crossing above a ten-period moving average on weekly data. It frames amplitude as a way to focus on stocks with movement, MACD as a momentum filter, and the weekly moving average cross as a longer-horizon trend signal. Formula and Python examples are provided to illustrate the intended filters.

The document identifies a limitation: relying on weekly trend conditions can miss shorter-term movements, and it recommends adding other technical and fundamental inputs. The examples do not clearly implement the stated weekly calculation: the Python snippet calculates moving averages from the supplied daily data, and its amplitude calculation differs from the formula’s percentage scale. No backtest, benchmark, or measured outcome is reported. The rule is therefore a screening concept whose timeframe alignment and indicator definitions should be checked before use.

Key ideas

• The proposed screen combines amplitude above 1, MACD above zero, and a bullish five-versus-ten-period moving average cross.\nThe moving average condition is described as using weekly data to assess a longer-term trend.\nThe document includes formula and Python illustrations, but the Python example does not clearly use weekly bars.\nIt warns that a weekly-only perspective may overlook shorter-term price movement.\nNo empirical performance results are presented.

Tags

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