Stock Screening with Prior-Day Range, the 10-Day Average, and MACD

Summary

This article proposes a stock screen combining three daily price conditions: prior-day amplitude above a threshold, the current opening price near its 10-day moving average, and MACD above zero. The intended interpretation is to find volatile stocks opening near a short-term average while momentum remains positive. It describes the average-price band as a possible pullback area and MACD as a trend filter.

The post includes example formulas and Python-style logic for calculating the conditions and intersecting the resulting stock sets. It gives no historical performance, benchmark, transaction-cost analysis, or evidence that the screen predicts profitable returns. The author notes that the conditions are narrow and that MACD may respond slowly to short-term moves, suggesting additional indicators such as RSI or KDJ as possible filters. The threshold band and indicator definitions should be checked against the intended market data and tested out of sample before use.

Key ideas

• The screen combines a prior-day range condition, an opening price near the 10-day moving average, and positive MACD.
• The moving-average condition is intended to locate stocks near a potential pullback area.
• The examples show how to calculate each filter and select stocks meeting all conditions.
• The article provides no backtest results or evidence of predictive performance.
• It cautions that the filters are limited and suggests considering additional indicators.

Tags

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