A MACD and Moving Average Screen for Non-STAR Market Stocks

Summary

This stock selection approach looks for shares with MACD above zero and short-term moving averages spreading upward, while excluding stocks from China’s STAR Market. It presents the screen as a way to identify stocks with positive trend signals and avoid a specific market segment. The accompanying indicator descriptions use standard MACD components based on exponential averages and compare five-day and ten-day simple moving averages. A sample implementation also checks whether the moving-average relationship has changed from the prior day.

The article offers no backtest, performance figures, or evidence that these conditions predict returns. It notes that technical signals can overlook company fundamentals and broader market conditions, and that excluding a market segment or having uneven industry representation can affect results. It suggests adding fundamental measures and balancing sector coverage, but does not specify how to do so. The sample code uses an index history source alongside industry data, so it does not fully demonstrate a reliable per-stock implementation of the stated screen.

Key ideas

• The screen requires MACD to be above zero.
• It looks for upward separation between short-term moving averages.
• It excludes stocks from the STAR Market.
• The article recommends adding fundamental analysis and considering industry balance.
• No performance testing or return evidence is provided.

Tags

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