Stock Screening with Price Range, Amplitude, and Rising DEA

Summary

This document describes a stock screen using three conditions: daily amplitude above 1%, closing price below 20, and a rising MACD DEA line. Its referenced screening formula adds a minimum trading-amount filter and looks for DEA to cross above its prior value. The accompanying Python example instead compares MACD with its signal line, so its implementation does not exactly match the stated DEA-based rule.

The note frames the combination as a way to find stocks with favorable technical conditions and a developing trend. It gives no historical test, performance figures, market, or precise indicator definitions beyond the formula references. It also cautions that technical signals can misread trends and suggests combining them with fundamental and industry information. The screen is therefore a basic candidate-selection rule, not evidence of a profitable strategy; the mismatch between the description and code should be resolved before use.

Key ideas

• The screen combines amplitude above 1%, a closing price below 20, and an upward-moving DEA line.
• The referenced formula also filters for trading activity and a DEA crossover condition.
• The Python example uses MACD versus its signal line, which differs from the stated DEA condition.
• The document provides no backtest or evidence that the screen predicts returns.
• It recommends adding fundamental and industry information to address the limits of technical signals.

Tags

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