A Stock Screen Combining Positive MACD, Rising Averages, and Large-Order Flow

Summary

This post proposes selecting stocks with MACD above zero, upward-moving averages, and rising large-order net volume, then sorting candidates by that flow measure. It describes MACD as a trend filter, moving averages as a directional signal, and large-order activity as an indication of short-term money flow. The post gives example formulas and Python code, but the code uses different moving-average conditions from the prose and does not consistently implement the described indicators. Some sample calculations also rely on inputs that are not clearly defined, so the example is not a complete, reproducible strategy.

The author cautions that simple technical screens may generate noise, that large-order flow can be cyclical and short-lived, and that an emphasis on flows may omit company fundamentals. Suggested improvements include adding fundamental measures and considering broader market, sector, and overall flow conditions. No backtest or return evidence is provided, so the rule should be treated as a screening concept rather than a validated trading method.

Key ideas

• The proposed screen combines positive MACD, rising moving averages, and increasing large-order net volume.
• Candidates are sorted by the large-order flow measure.
• The prose and sample code differ on how moving averages are used, limiting reproducibility.
• Large-order flow may reflect short-term and cyclical activity rather than a durable signal.
• The post recommends adding fundamental and market-context filters but provides no backtest evidence.

Tags

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