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Stock Screening with Range, Weekly MACD Histogram, and MACD Level

Article SuperMind
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Summary

This stock screen combines three technical conditions: amplitude greater than 1, a positive weekly MACD histogram, and MACD above zero. The article frames the range and weekly histogram conditions as signs of stronger price action, while the zero-line condition is intended to select stocks with upward momentum. It includes formula and Python examples for applying the filters to weekly and daily price data.

The document supplies no backtest, performance statistics, or comparison with a benchmark. It cautions that abrupt market changes can cause the screen to fail and that the rules omit other factors, including market sentiment and broader asset movements. It recommends considering additional technical and fundamental measures and adapting parameters to market conditions. The sample code is explicitly illustrative; its amplitude calculation and indicator handling may not match the stated screening rule exactly, so implementation details require independent verification.

Key ideas

  • The screen requires amplitude greater than 1, a positive weekly MACD histogram, and MACD above zero.
  • It applies weekly and daily price data in its example implementation.
  • The article presents the conditions as a simple trend-oriented selection method, without empirical validation.
  • It recommends considering additional market, technical, and fundamental information.

Tags

EquitiesTechnical indicatorsMomentumBacktesting

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