Stock Screening with Range, Turnover, and Positive MACD

Summary

The document proposes a technical stock screen requiring a price range measure above a threshold, turnover between two bounds, and MACD above zero. It presents these conditions as a way to find active stocks with short-term trend or momentum, and includes example indicator logic and a Python workflow for scanning listed shares. The workflow calculates a range from recent highs and lows, estimates turnover, and checks the latest MACD reading.

The article offers no backtest results or evidence that the filters produce excess returns. It cautions that the screen excludes fundamentals and other company risks, while short-term trends may fade and frequent trades can raise costs. It recommends considering fundamental and additional technical measures, sector conditions, risk controls, and position sizing. The examples are references for implementing the screen, and the proposed refinements are not evaluated in the document.

Key ideas

• The screen combines a price range condition, bounded turnover, and MACD above zero.
• The article frames the rules as a short-term technical filter for active stocks.
• The example implementation scans stock data and calculates range, turnover, and MACD conditions.
• No performance evidence is supplied, and the strategy may incur excess trading costs or overlook fundamental risks.
• The article suggests adding fundamental factors, sector context, risk controls, and position sizing.

Tags

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