Stock Screening with Price Range and MACD Conditions

Summary

This stock screen combines three technical conditions: daily price amplitude above 1%, MACD above its zero line, and a rising DEA signal line. The document frames amplitude and positive MACD as signs of technical strength, while the rising DEA condition is intended to favor stocks with an upward trend. It also gives example indicator expressions and a Python filtering outline that calculates MACD, checks the conditions, and sorts candidates by trading volume.

The screen is a simple technical filter, not a complete investment strategy. The document warns that it omits company fundamentals and industry trends, so it could select stocks from industries with weak performance growth. It suggests combining technical signals with fundamental and industry information. The examples also differ in implementation: the written rule uses amplitude relative to the previous close and refers to MACD crossing above zero, while the Python outline uses the open for its range calculation and tests whether the MACD histogram is positive. No backtest results, execution rules, or evidence of profitability are provided.

Key ideas

• The screen requires amplitude above 1%, MACD above zero, and a rising DEA line.
• The proposed rationale is to combine price movement with positive momentum and a strengthening signal line.
• The document provides both indicator formulas and a Python filtering outline, but their calculations are not fully consistent.
• Technical conditions alone omit fundamentals and industry context, which the document identifies as a source of risk.

Tags

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