Equity Screen Combining Positive MACD, Rising Moving Averages, and Turnover

Summary

This stock-selection rule combines a positive MACD condition, an upward-moving average condition, and a filter on the prior day's actual turnover. The document explains these as trend and liquidity cues, then provides indicator formulas and a Python example for calculating MACD and a five-period moving average from daily prices. Its sample code also shifts volume to approximate the stated prior-day turnover condition.

The author notes that a one-day turnover reading may not represent broader liquidity and that MACD and moving-average signals can be subjective or imperfect. The explanation describes turnover as a fundamental factor, although it is primarily a trading-activity measure. The code and written rule also require careful alignment of dates and turnover calculations before use. No historical test, benchmark comparison, or performance results are supplied, so the screen should be treated as an unvalidated selection recipe rather than a demonstrated strategy.

Key ideas

• The screen requires MACD to be above zero and a moving average to be rising.
• It filters candidates using a band for the prior day's actual turnover.
• The document includes formulas and an example for calculating MACD and a short moving average.
• The author warns that a single day's turnover may misrepresent liquidity and technical signals have limits.
• No backtest or performance results are reported.

Tags

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