Stock Screening with Weekly MACD, Price Amplitude, and RSI

Summary

This article describes a stock selection rule combining daily price amplitude above 1, a positive weekly MACD histogram, and a six-period RSI below 65. It presents the screen as a way to find stocks with positive weekly momentum while filtering for a moderate RSI reading. It also offers example implementations for a charting platform and Python, and suggests adding technical and fundamental measures such as volume, moving averages, valuation ratios, and book value when refining the screen.

The article provides no backtest results or evidence that the filter is profitable. It warns that the rule is narrow and says its parameters may need adjustment across market conditions and timeframes. There is also a notable implementation ambiguity: the prose specifies amplitude greater than 1, while the Python example checks the standard deviation of daily highs, which is a different measure. The weekly MACD condition is described as a red histogram, while the code checks positive MACD and difference values. These examples therefore need careful validation before use.

Key ideas

• The screen combines amplitude above 1, a positive weekly MACD histogram, and an RSI below 65.
• The RSI calculation in the example uses a six-period lookback.
• The article recommends combining the screen with other technical or fundamental indicators.
• The rule is presented without performance evidence, and the example calculations do not exactly match the stated conditions.

Tags

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