Stock Screening with Daily Range, the 10-Day Average, and MACD

Summary

This document describes a short-term stock selection rule combining three daily price conditions: a range greater than 1%, an opening price within 2% of the 10-day moving average, and a positive MACD reading. It gives sample implementations in indicator formula syntax and Python, where the MACD condition also checks that the signal line is positive. The proposed rationale is that range indicates movement, proximity to the moving average provides a price reference, and positive MACD suggests upward momentum.

The document supplies no backtest, performance figures, or comparison with alternative screens, so its claims about potential opportunity are not demonstrated by evidence. It warns that simple technical filters can be affected by market sentiment and herd behavior, and that MACD results depend on timing and parameter choices. It suggests testing parameter settings and considering additional indicators or fundamental analysis. The rule is therefore a screening example, not a fully specified portfolio or risk-management plan.

Key ideas

• The screen requires daily range above 1%, an open near the 10-day moving average, and positive MACD.
• The sample formula places the opening price within 2% of the moving average.
• The Python example also requires a positive MACD signal line.
• The document offers no performance evidence and recommends backtesting and risk controls.

Tags

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