Stock Screening with Price Range, Year, and MACD Filters
Summary
The document describes a stock screen combining three conditions: daily high-low range above one percent of the previous close, a trading date in 2021, and a MACD value below zero from two trading days earlier. It gives corresponding formula and Python examples, using standard MACD periods, and explains that the range condition selects more volatile stocks while the MACD condition identifies recent weakness.
The text offers no backtest results or evidence that this screen is profitable. Its stated year filter restricts the selection to historical 2021 data, so it does not by itself define a current trading rule. The accompanying discussion warns that the screen may encourage short-term speculation, overlook company fundamentals, and rely too heavily on one indicator. It suggests combining technical signals with financial and business factors and spreading exposure across securities. The examples explain how to express the rules, but do not specify portfolio construction, trade timing, exits, or risk controls.
Key ideas
- The screen requires a daily high-low range greater than one percent of the previous close.
- It filters observations to dates in 2021.
- It checks whether MACD was below zero two trading days earlier.
- The document cautions that a single technical indicator can mislead and recommends broader analysis and diversification.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.