A Stock Screen Combining Positive MACD, Rising Averages, and a Weekly Breakout

Summary

This note describes a technical stock screen requiring MACD to be above its zero line, short-term moving averages to fan upward, and the weekly price to cross above a 30-week moving average. It supplies indicator formulas and a Python example that approximates the conditions with positive MACD difference, a five-day average above a ten-day average, and price above a 30-period average.

The rationale is that the MACD and moving-average conditions indicate positive direction, while the longer-period cross may signal a trend breakout. The article characterizes the approach as suited to longer holding periods, but provides no backtest, performance figures, or comparison with alternatives. It cautions that technical signals can miss company-specific events and that the screen omits fundamentals such as financial condition and industry outlook. The example uses daily rolling data for the purported weekly condition, so implementation details would need to be reconciled before treating it as a weekly signal.

Key ideas

• The screen combines positive MACD, upward alignment of short-term averages, and a price cross above a 30-week average.
• The code example approximates the conditions with daily data and a 30-period rolling average.
• The article frames the signals as a way to identify positive technical direction and a longer-term breakout.
• It provides no performance evidence and warns that company events and fundamentals are not captured.

Tags

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