A MACD and Moving-Average Screen with a Rounded-Price Filter

Summary

This stock-selection idea combines a positive MACD reading with an upward-moving-average condition and a rounded price pattern. The article interprets these signals as evidence of an existing upward trend that might continue. It sketches indicator formulas and a screening approach that compares price with a smoothed measure derived from recent highs and lows. A separate ranking step orders candidates by daily price change.

The post offers formulas and illustrative Python-style screening logic, but it does not report a backtest, selected-stock results, or risk-adjusted performance. Its explanation also points out that identifying a rounded pattern can be subjective, and that the screen relies on a narrow set of technical conditions. External economic or policy changes can affect outcomes. The suggested improvements include comparing alternative filters and considering company fundamentals; these are proposals rather than tested enhancements. The document therefore describes a candidate momentum screen, not evidence that the signals predict future returns.

Key ideas

• The screen looks for positive MACD, rising moving averages, and a rounded price pattern.
• It uses a smoothed recent price-range measure as a proxy for the rounded shape.
• Candidates are ranked by daily price change after applying the filters.
• Pattern identification is subjective, and the post reports no backtest or trading results.
• The author suggests comparing filters and incorporating fundamental information.

Tags

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