Stock Screening with Weekly MACD, Daily Range, and Valuation Filters

Summary

The document describes a stock screen combining daily price movement with a weekly technical signal. It selects stocks with amplitude above 1, a positive weekly MACD condition, and a latest close above the prior day's low. Its proposed expanded version adds a valuation filter, although the prose calls for price-to-book between 1 and 5 while the example formulas and code use price-to-earnings instead.

The article explains that the range condition captures volatility and the price conditions seek evidence of upward movement. It gives formula and Python examples, but no backtest results, benchmark, or performance evidence. It warns that the screen omits fundamentals and that a close-to-prior-low condition may select volatile stocks. The suggested improvements are to add fundamental measures and compare price against an average. The criteria remain underspecified for implementation, including the meaning of amplitude and the inconsistent valuation variable, so results may differ across platforms.

Key ideas

• The screen combines a daily amplitude threshold with a positive weekly MACD reading and a close above the previous day's low.
• The expanded rules add a valuation range, but the text and examples disagree on whether it is price-to-book or price-to-earnings.
• The article presents example formulas and code but reports no backtest or investment performance.
• The author identifies missing fundamental context and volatility as risks of the screen.

Tags

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