A Stock Screen Combining MACD, Positive P/E, and a Weekly Moving Average

Summary

This document describes a stock selection rule that combines a positive MACD reading, positive price-to-earnings ratio, and a weekly moving-average condition involving the 30-week line. It presents these filters as signals of upward momentum, a positive earnings multiple, and a longer-term upward trend. It also gives example indicator definitions and a sketch of how to filter and rank stock data.

The article warns that MACD can lag and that a moving-average crossover does not establish a stock’s long-term prospects. It suggests adding indicators such as RSI or DMI and considering company fundamentals. No backtest, performance results, transaction costs, or specific portfolio risk controls are provided. The example code and screening expression should be treated cautiously: the weekly moving-average condition is described ambiguously, and the supplied snippets do not establish a complete, validated implementation.

Key ideas

• The screen combines MACD above zero, positive P/E, and a weekly 30-week moving-average condition.
• The article interprets these filters as signs of momentum, positive earnings valuation, and longer-term trend.
• MACD may lag price changes, while a moving-average cross cannot predict long-term company performance.
• The document gives no backtest or evidence that the combined screen is profitable.

Tags

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