Stock Screening with Amplitude, Weekly MACD, and a Morning Star Pattern

Summary

The post describes a technical stock screen combining daily price amplitude above a threshold, a positive weekly MACD reading, and detection of a bullish morning star candlestick pattern. It presents the morning star as a three-candle reversal signal and treats the weekly indicator as evidence of short-term upward movement. Formula and Python examples show how the conditions might be applied to a stock universe, although their implementations do not fully align: the Python example uses a daily MACD reading, while the written rule calls for a weekly one.

The author cautions that the screen emphasizes technical signals and may overlook company fundamentals. Suggested additions include valuation and profitability measures, alongside other technical indicators. The post offers no documented backtest, trade execution rules, holding period, or risk controls, and it describes the pattern as limited rather than conclusive evidence. The thresholds and signals should therefore be treated as screening criteria, not proof of predictive performance.

Key ideas

• The proposed screen combines price amplitude, a positive weekly MACD reading, and a bullish morning star pattern.
• The morning star is treated as a potential reversal signal, not a guarantee of rising prices.
• The examples include a mismatch between the written weekly MACD condition and the daily MACD code example.
• The author suggests adding fundamental measures such as valuation and profitability.
• The post provides no backtest results, execution rules, or risk controls.

Tags

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