MACD and Limit-Up Pattern Screen Ranked by Stock Heat

Summary

This proposed daily premarket stock screen combines positive MACD, a non-ST restriction, market-heat ranking, and a five-session limit-up pattern. The pattern is described as five consecutive sessions in which each day reached a stated return threshold over one of several lookback windows and closed above its open. The screen is intended to find stocks with positive momentum and strong attention, while the pattern is used as a proxy for market sentiment. The post also provides indicator formulas and example filtering code.

The author flags possible lag in the limit-up pattern, omission of other market signals, small-sample bias, and unexpected news before trading. Suggested additions include other indicators, fundamental and sector analysis, and quantified news inputs. There are no backtest results or performance statistics. The formula examples define a MACD histogram, and the code filters for a positive histogram, which may not match the prose’s broader description of MACD above zero. The rule is presented as a screening idea, not validated evidence of a profitable strategy.

Key ideas

• The screen combines a positive MACD condition, exclusion of ST stocks, and ranking by stock heat.
• Its five-session pattern requires limit-up threshold moves and closes above opens across the period.
• The post warns about delayed signals, small samples, omitted information, and premarket news risk.
• The examples lack performance evidence and may operationalize the MACD condition differently from the prose.

Tags

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