Stock Screening with Range, MACD, and Ownership Concentration Filters

Summary

This document proposes a stock screen combining prior-period price range, a MACD signal above the zero line, and an ownership concentration measure capped at 70%. The rationale is to seek stocks with price movement and positive momentum while excluding shares whose trading may be dominated by a small group of holders. It presents formulas and a code sketch for applying the filters, then suggests adding valuation measures such as price-to-earnings or dividend yield.

The document gives no backtest, comparison, or measured evidence that these conditions improve returns or reduce risk. Its explanation of concentration is qualitative, and a low concentration reading can itself be associated with greater price variability; strict limits may also exclude some stocks. The formulas and example are illustrative, so their data definitions and implementation would need checking before use. The screen is not a complete trading system and does not specify position sizing, entry execution, or exit rules.

Key ideas

• The proposed screen combines a price-range threshold, MACD above zero, and an ownership concentration ceiling.
• The filters are intended to capture positive momentum while avoiding highly concentrated ownership.
• The document recommends considering valuation measures alongside the technical conditions.
• No performance evidence is provided, and the screen lacks trading and risk-management rules.

Tags

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