Weekly MACD and Range Filter for Stock Selection

Summary

This stock-screening approach combines a daily amplitude threshold with weekly MACD conditions: MACD should be above zero, and its histogram should be positive and growing relative to the prior week. The document describes these as a way to identify stocks with positive short-term momentum. It also gives formula references and a sample implementation outline, though the code mixes indicator expressions and does not provide validated performance results.

The author cautions that the screen uses technical signals alone and may select firms with weak earnings or unsuitable valuations. Suggested refinements include adding fundamental measures and considering market and sector conditions. No backtest evidence, precise evaluation method, or risk-adjusted results are presented, so the criteria should be treated as a screening idea rather than an established strategy.

Key ideas

• The screen requires price amplitude above a threshold and weekly MACD above zero.
• A qualifying weekly histogram is positive and larger than the prior week's histogram.
• The document recommends adding fundamental, market, and sector filters.
• It provides no performance evidence, and the technical signals may produce false positives.

Tags

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