Stock Screening with Price Amplitude, Weekly MACD, and a Low K Indicator

Summary

This document presents a preliminary stock-selection screen combining daily price amplitude above a threshold, a positive weekly MACD histogram, and a K indicator reading below a threshold. It frames the combination as a way to find stocks with possible short-term upside. It also provides sample implementations, although the Python example uses daily MACD and a price-below-level condition, so it does not exactly match the stated weekly and K-indicator rules.

The accompanying discussion warns that the screen does not assess company fundamentals or the broader trend, and may select financially weak or volatile stocks. It suggests supplementing technical conditions with fundamental measures, moving averages or other indicators, and regulatory considerations. No backtest, performance evidence, or precise definition of the amplitude and K calculations is supplied. The screening rules should therefore be treated as an illustrative starting point; implementation details and the proposed additions would need independent specification and testing.

Key ideas

• The proposed screen combines elevated price amplitude, a positive weekly MACD histogram, and a low K indicator reading.
• The sample Python conditions differ from parts of the stated screening logic.
• The document cautions that technical filters alone do not evaluate company quality or trend context.
• It proposes adding fundamental, technical, and regulatory filters but gives no performance validation.

Tags

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