A Short-Term Stock Screen Using MACD, Moving Averages, and Auction Returns

Summary

This short-term stock-selection proposal combines three conditions: MACD above zero, upward separation of the day’s moving averages, and an opening auction return between -2% and 5%. The indicators are intended to capture positive price momentum and constrain the opening move, which the post treats as a reflection of current market sentiment. It gives formulas for MACD, 5- and 10-period averages, and auction return, along with a sample screening implementation.

The author warns that auction moves can be driven by company-specific events and may not reliably indicate the underlying opportunity; short-term price changes also create substantial risk. Suggested additions include RSI, financial measures, and industry context. The post provides no backtest, performance statistics, or detailed portfolio and exit rules. Its implementation also appears to express the MACD condition through the difference line and the moving-average condition through a simple comparison, which may not fully represent the written descriptions.

Key ideas

• The screen combines positive MACD, upward moving-average alignment, and a bounded auction return.
• The auction return range is stated as -2% to 5%.
• The proposed signals target short-term momentum and market sentiment.
• Company events can distort auction returns, and the approach carries short-term risk.
• No strategy performance or exit methodology is presented.

Tags

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