Stock Screening with Price, Amplitude, and Positive Weekly MACD

Summary

This article describes an equity screen that combines a daily price-range condition, a low share-price ceiling, and a positive weekly MACD reading. The stated rules require amplitude above 1%, a closing price below 20, and MACD above zero in consecutive observations. The article presents indicator formula and Python-style examples and characterizes the combination as a way to consider short-term movement alongside a longer-term trend filter.

It cautions that technical filters can omit some small or illiquid stocks and newly listed companies, and that relying on chart indicators can neglect company fundamentals, industry conditions, and macroeconomic or policy changes. It suggests adding financial quality and growth measures and using industry research. The notes do not provide a backtest, benchmark, risk-adjusted returns, or evidence that the proposed conditions predict future performance. There is also a potential implementation ambiguity: the examples should be checked to confirm that the amplitude calculation, price threshold, MACD frequency, and indicator values all match the intended weekly-versus-daily rules before use.

Key ideas

• The screen requires amplitude above 1%, a closing price below 20, and MACD above zero in consecutive observations.
• The rules combine short-term price behavior with a longer-term trend filter.
• The article warns that technical screening may omit illiquid and newly listed stocks.
• It recommends supplementing technical signals with financial and industry analysis.
• No backtest or performance evidence is presented, and indicator frequency needs careful implementation.

Tags

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