Stock Screening with Price Amplitude, Rising Moving Averages, and Positive MACD

Summary

This note proposes a stock screen combining price amplitude above a threshold, upward movement around a short moving average, and MACD above zero. It interprets amplitude as a measure of recent price movement, the moving-average condition as a short-term upward tendency, and positive MACD as a bullish signal. Formula references and Python-style examples illustrate how to assemble the filters, although the implementation details are not fully consistent: the written description specifies amplitude above one, while the sample code applies a different amplitude threshold and includes a positive price-to-earnings filter.

The author cautions that the screen omits company fundamentals and can be affected by market themes and indicator sensitivity. Suggested refinements include adding fundamental measures and other technical indicators, and tuning MACD parameters. No backtest results or evidence of returns are reported, and the code is presented as a reference that may need adjustment. The conditions therefore describe a short-term screening hypothesis, not a demonstrated trading edge.

Key ideas

• The proposed screen combines elevated price amplitude, a rising short moving-average condition, and MACD above zero.
• The article presents formula and Python-style references for implementing the filters.
• The prose and sample code use inconsistent amplitude thresholds, and the code adds a valuation condition.
• The author notes that fundamentals and broader market influences are not adequately covered.
• No performance testing is reported, and the screen is presented as an adjustable hypothesis.

Tags

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