Stock Screening with Daily Range, Two-Day Highs, and Weekly MACD

Summary

This stock screen combines three technical conditions: daily amplitude above 1%, a current high matching the highest high of the last two days, and weekly MACD above zero. The first two conditions select for recent movement and a short-term high, while the weekly MACD condition is intended to favor stocks with a positive longer-term trend. The document also gives formula examples and a brief outline of how the conditions could be combined in a screening workflow.

No backtest results or evidence of predictive performance are provided. The author notes that reliance on weekly MACD leaves other trend measures and fundamentals out of the screen, and that technical indicators can lead to volatile results and selection errors. Suggested additions include other indicators and valuation measures, but these are proposals rather than tested improvements. The sample implementation also includes unspecified filters, so it is not a complete, reproducible trading strategy.

Key ideas

• The screen requires daily amplitude above 1% and a high equal to the highest high over two days.
• It adds weekly MACD above zero as a trend filter.
• The document offers example formulas but reports no performance testing.
• The screen omits other trend indicators and fundamental measures, which may limit its selections.

Tags

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