A MACD, Moving-Average, and Prior-Low Stock Screen

Summary

This short strategy note describes a technical stock screen with three conditions: MACD must be above zero, short-term moving averages must be diverging upward, and the current close must exceed the previous session’s low. It gives example MACD and moving-average calculations and shows how to compare the close with a one-day lag of the low. The intended use is short-term stock selection, with the MACD and moving averages acting as trend filters and the prior-low condition as a simple price-strength check.

The document does not provide backtest results, position rules, exit conditions, or evidence that the screen is profitable. It flags that the close-versus-prior-low test may be noisy and that the approach does not assess long-term fundamentals. Its example code uses a specific security’s historical data, so it does not establish performance across a universe of stocks. The rules are best understood as a basic screening recipe that would need careful testing and additional risk controls before use.

Key ideas

• The screen requires MACD above zero, upward separation between moving averages, and a close above the prior session’s low.
• The MACD and moving-average conditions are used as short-term trend filters.
• The prior-low comparison is a simple price-strength test and may be sensitive to noise.
• The note provides no backtest, exit rules, or evidence of profitability.

Tags

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