Weekly MACD and Volatility Stock Screen with Fundamental Filters

Summary

The document describes a stock-selection screen combining price movement and trend signals with valuation and profitability filters. Its technical conditions are amplitude greater than one, a positive weekly MACD histogram, and weekly MACD above zero. It then adds price-to-earnings below 30, price-to-book below five, and return on equity above 10 percent. The stated rationale is to favor volatile stocks with short- and longer-term upward momentum while excluding some expensive or lower-profitability candidates.

It includes example formulas for a screening platform and a Python-style outline, but the implementation shown does not clearly match the stated weekly logic: it requests daily data and checks MACD values using daily observations. The text warns that technical-only screening can omit fundamentals and sector context, and that indicator-based selection may follow market sentiment. It suggests fundamental and risk checks, but reports no backtest, returns, transaction costs, or evidence that the combined thresholds improve performance. The numerical cutoffs are presented as screening rules, not validated universal settings.

Key ideas

• The screen combines amplitude above one with weekly positive MACD conditions.
• It adds price-to-earnings below 30, price-to-book below five, and return on equity above 10 percent.
• The author frames the technical conditions as filters for volatility and upward trend.
• The sample Python outline uses daily data, which differs from the stated weekly signal logic.
• The document provides no backtest or evidence that the thresholds are profitable.

Tags

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