A Low-Priced Stock Screen Using MACD and Bullish Candles

Summary

This screen selects stocks with MACD above its zero line, a closing price below the stated price limit, and a close above the open. The author interprets the MACD condition as a strength filter and the bullish candle as a sign of positive price action. The document provides indicator and data-filter examples, and mentions ranking selected names by a measure of market attention.

The article does not provide backtest results, a benchmark comparison, or evidence that these conditions improve returns. It cautions that the rule omits company fundamentals and industry factors, and that a single candle’s direction may not capture broader market conditions. It suggests adding other technical and fundamental inputs. The selection criteria are therefore a basic screening recipe; they do not specify a validated entry, exit, or risk-management process.

Key ideas

• The screen combines MACD above zero, a price ceiling, and a close higher than the open.
• The document describes the candle condition as a positive price-action filter.
• It provides no performance results or benchmark comparison.
• Fundamentals, industry context, and broader market conditions are absent from the screen.

Tags

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