Weekly MACD and Price-Range Filters for Stock Selection

Summary

The document describes a technical stock screen based on three conditions: daily range greater than one percent of the previous close, weekly MACD above zero, and a rising DEA signal line. It frames the range condition as a way to select volatile stocks and the weekly MACD conditions as evidence of upward momentum. Formula examples and a Python illustration show how such filters might be applied to stock data, although the code’s calculations do not map cleanly to every stated condition.

The article does not provide backtest results or evidence that the screen predicts future gains. It warns that technical indicators can lag and that the rules omit financial fundamentals. It suggests combining the screen with measures such as volume and moving averages, as well as fundamental and market context. These additions are recommendations, not tested improvements, and the screen should be understood as a candidate-selection heuristic rather than a demonstrated trading system.

Key ideas

• The screen combines a daily price-range threshold with weekly MACD and DEA trend conditions.
• The stated rationale is to find volatile stocks with positive technical momentum.
• The document supplies indicator formulas and sample data-processing code, but no performance tests.
• The author notes lag risk and the omission of fundamental and broader market factors.

Tags

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