Combining MACD, Moving Averages, and Turnover for Stock Screening

Summary

This stock screen looks for shares with MACD above zero, upward movement in short-term moving averages, and turnover within a stated range. The technical indicators are meant to identify upward conditions, while the turnover filter aims to exclude stocks with unusually low or high activity. The document provides example indicator definitions and a Python-style outline for calculating the measures and combining them into screening conditions.

The material is a proposed selection logic, not a tested trading system: it gives no backtest, transaction rules, or performance evidence. It notes that turnover is only a liquidity-related reference and does not describe the full trading situation of a stock. It recommends considering fundamentals, industry and broader market conditions, and risk controls alongside the indicators. The example implementation also leaves fundamental filters and weighting conditions unspecified, so additional research and validation would be needed before the screen could support a complete strategy.

Key ideas

• The screen combines positive MACD, rising short-term moving averages, and a bounded turnover measure.
• The turnover condition is intended to screen for a chosen level of trading activity.
• Example calculations are provided, but key fundamental conditions remain unspecified.
• The document reports no backtest or evidence that the screening rules are profitable.
• Market, industry, company, and risk factors should be considered with the indicator signals.

Tags

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