Combining MACD Strength, Low Share Price, and Persistent ROE

Summary

This document outlines a stock screen that combines a positive MACD reading with a share price below 12 and return on equity above 15% in each of the past five years. The stated intent is to pair a technical indication of strength with a record of sustained profitability. Its formula treats these requirements as simultaneous filters, and the Python example sketches how historical prices and fundamental data might be joined before sorting candidates by popularity.

The article argues that repeated high ROE can indicate profitability and that MACD can help identify stronger stocks. It provides no backtest, return figures, or comparison with a benchmark, so these claims are not validated by evidence in the document. It acknowledges that ROE alone omits other important factors, including industry conditions and leverage, and proposes adding further fundamentals, sentiment measures, and risk controls. The sample implementation also depends on data retrieval and date alignment that are not fully explained.

Key ideas

• The screen requires MACD above zero and a share price below 12.
• It additionally requires ROE above 15% for each of five consecutive years.
• The method combines a price-based indicator with a profitability filter but supplies no performance test.
• The document warns that ROE omits industry and balance-sheet context and recommends broader risk analysis.

Tags

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