MACD Above Zero with Positive Net Profit for Stock Selection

Summary

This stock screen combines a technical trend condition with a profitability filter: select shares whose MACD is above zero and whose net profit is positive. The article presents MACD above zero as a sign of an upward price trend and positive net profit as a basic measure of company profitability. It also refers to company characteristics, but does not define a separate company-type condition in the final rule or example formula.

The document gives a sample indicator formula and Python workflow using price history to calculate MACD, then checking profitability data. It offers no backtest, performance figures, or evidence that the screen produces low-risk or high-return results. It cautions that share prices can fall, fundamentals can change, and profitable companies may perform poorly; trading restrictions such as price limits do not remove those risks. It suggests adding other financial and technical measures, but does not specify how to combine or validate them.

Key ideas

• The screen selects stocks with MACD above zero and positive net profit.
• The article treats MACD as a trend signal and net profit as a profitability filter.
• It provides illustrative formula and Python examples but reports no measured results.
• Price declines, changing fundamentals, and trading restrictions remain risks.

Tags

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