Stock Screening with Range, Turnover Value, and MACD Histogram

Summary

This stock-selection screen combines a daily price-range filter, a minimum prior-day trading-value threshold, and a negative MACD histogram reading from two sessions earlier. The article presents the range and trading activity conditions as ways to find volatile, actively traded shares, while the MACD condition is intended to identify stocks that have recently experienced a short-term pullback.

The post supplies example formulas and code references, but reports no backtest, returns, or comparison showing that the added MACD condition improves selection. It notes that the screen omits fundamentals, relies on a narrow indicator window, and may select volatile shares with elevated risk. It suggests adding other indicators, company financial measures, and liquidity checks; these are proposed extensions rather than tested improvements.

Key ideas

• The screen combines price amplitude, prior-day trading activity, and a lagged negative MACD histogram.
• The MACD filter is intended to find stocks that may have recently corrected.
• The post provides implementation examples but no performance evidence.
• Fundamental information, longer-term context, and additional liquidity assessment are absent from the basic screen.
• High-range, active stocks may carry substantial volatility risk.

Tags

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