Stock Screening with Amplitude, Weekly MACD, and Order Flow

Summary

This stock screen combines daily price amplitude above 1, a positive weekly MACD histogram, and an outside-to-inside trade ratio above 1.3. It is intended to find shares with active price movement, a positive weekly technical signal, and buying-side activity. The document gives both a screening formula and a Python outline for applying the conditions across stocks.

The approach uses a small set of technical and order-flow measures, but supplies no historical performance results or validation. The article notes that it omits factors such as volume growth, valuation, fundamentals, and industry context, so the signal should not be used alone. It suggests adding technical indicators and fundamental information, while acknowledging that the selection criteria may still carry risk.

Key ideas

• The screen requires amplitude above 1 and a positive weekly MACD histogram.
• It also requires the outside-to-inside trade ratio to exceed 1.3.
• The article frames the conditions as a way to identify active stocks with positive trend and buying activity.
• The screen does not account for valuation, volume growth, fundamentals, or industry factors.
• No backtest evidence is provided to establish the strategy’s reliability.

Tags

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