A Stock Screen Combining Positive MACD, Rising Averages, and Trend Initiation

Summary

This post proposes a stock-selection screen that combines MACD above its zero line, upward separation of short moving averages, and a signal described as the start of a major advance. It illustrates calculations for MACD, moving averages, and KDJ, then sketches how to combine indicator conditions with fundamental filters. The intended use is to find stocks showing signs of an emerging upward trend.

The article supplies example formulas and partial Python screening logic, but leaves the definition and calculation of the trend-initiation signal unfinished. The sample also does not demonstrate a complete universe-wide implementation, historical test, or performance results. The author notes that sector weakness, individual stock events, and brief trend phases can undermine selections, and suggests adding sector, fundamental, and other indicator filters. These are proposed refinements rather than validated improvements, so the screen should be treated as an incomplete hypothesis rather than an evidenced strategy.

Key ideas

• The screen requires MACD to be above zero and short moving averages to begin diverging upward.
• A third condition identifies the start of a major upward move, but its definition is omitted.
• The examples show indicator calculations without reporting a backtest or trading results.
• Sector conditions, company-specific events, and short-lived trends are identified as risks.
• Fundamental and additional technical filters are suggested but not evaluated.

Tags

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