Stock Screening with Price Amplitude, MACD, and Positive Earnings
Summary
This note describes a stock screen requiring daily price amplitude above 1, MACD above its zero line, and a positive price-to-earnings ratio. The conditions aim to combine elevated price movement, a bullish technical signal, and a company reporting positive earnings. It supplies formula and Python examples, but the code references functions and historical data transformations without explaining their definitions or ensuring they are directly executable.
The article does not report a backtest, performance results, or evidence that these combined filters improve returns. It acknowledges that the screen does not adequately account for company fundamentals or industry prospects and that technically qualifying stocks may still have investment risks. It suggests supplementing the positive-earnings check with measures such as book value and return on equity, alongside broader fundamental and industry analysis. The method is a screening concept rather than a fully specified or empirically validated strategy.
Key ideas
- The screen requires price amplitude above 1, MACD above zero, and a positive PE ratio.\nThe conditions combine a volatility-related filter, a technical signal, and a profitability proxy.\nThe examples provide formula and Python references but leave implementation details unclear.\nNo backtest or performance evidence is included.\nThe note recommends broader fundamental, industry, and risk analysis.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.