Stock Screening with Amplitude, Weekly Momentum, and Volume Ratio

Summary

The article proposes screening stocks for amplitude above 1, a bullish weekly bar, and a volume ratio above 1.5 but below 6. It presents these conditions as a way to find shares with higher price movement, an upward weekly signal, and elevated but not extreme trading activity. The provided formula and Python example are intended as implementation references, though the Python example checks a daily MACD value rather than a clearly specified weekly bar.

The article acknowledges that a price and volume screen omits company fundamentals and that historical volume-ratio thresholds may not predict future performance. It suggests adding valuation measures and combining multiple factors, including machine learning, but provides no test results or validation for those extensions. The screening rules therefore remain a proposed filter rather than evidence of a profitable strategy.

Key ideas

• The proposed screen combines amplitude, weekly direction, and a bounded volume ratio.
• The stated volume-ratio range is greater than 1.5 and less than 6.
• The sample implementation's daily MACD check does not clearly match the stated weekly-bar condition.
• The article warns that price and volume alone omit fundamental information and may not predict future performance.
• No backtest results are provided.

Tags

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