A MACD, Positive P/E, and Lower-Low Stock Screen

Summary

The document describes a daily, end-of-session screen for stocks whose MACD is above zero, price-to-earnings ratio is positive, and current low is below the previous session’s low. It presents the combination as a way to find strong-trend stocks that have pulled back, with a possible rebound setup. It also gives indicator definitions and example screening and ranking logic, sorting qualifying names by market capitalization.

The rationale and implementation are illustrative rather than validated research: the page supplies no historical test, benchmark, transaction-cost estimate, or performance evidence. It notes that relying on technical indicators or a single recent low can miss company fundamentals, broader market conditions, and sector behavior. A positive P/E does not by itself establish fair value, and a lower low does not ensure a rebound. The document recommends adding broader filters and risk controls but does not specify or test them.

Key ideas

• The screen selects stocks with MACD above zero, positive P/E, and a daily low below the previous day’s low.
• It evaluates the conditions after each trading session closes.
• The stated rationale combines trend strength with a potential pullback and rebound setup.
• The example ranks qualifying stocks by market capitalization.
• The document provides no backtest evidence and warns about indicator, market-context, and risk-control limitations.

Tags

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