Stock Screening with KDJ, Price Amplitude, and Weekly MACD

Summary

This stock selection method combines price amplitude, a low KDJ reading, and the weekly MACD histogram. The stated rules screen for amplitude above 1, K below 20, and a positive weekly MACD histogram, aiming to find volatile stocks that may be poised for a rebound. The document also gives example indicator logic and a Python outline that checks for a histogram transition from negative to positive.

No backtest results or performance evidence are provided. The article warns that chart patterns and MACD interpretation can be uncertain, and that high-amplitude stocks may carry substantial volatility. It suggests combining the screen with other indicators, fundamental information, and sector or capital-flow analysis. The exact interpretation of the amplitude threshold and the distinction between weekly and other indicator calculations may depend on implementation, so the rules need clear data and timeframe definitions before testing.

Key ideas

• The screen combines price amplitude above 1 with a KDJ reading below 20 and a positive weekly MACD histogram.
• The article frames the setup as a possible rebound screen for volatile, weakly priced stocks.
• Its Python example looks for a MACD histogram change from negative to positive.
• The method provides no backtest results, so its effectiveness is not established.
• The document cautions that volatile stocks and technical signals require risk controls.

Tags

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