MACD and Moving-Average Conditions for an Equity Momentum Screen

Summary

This note proposes an equity screen using a positive MACD reading, upward movement in short-term averages, and an opening price near the ten-day average. Its formula section also specifies the midpoint of the day's high and low within 10% of that average, while the Python example instead checks the opening price. The note describes positive MACD and rising averages as signs of an upward trend and potential short-term opportunity.

The document includes indicator definitions, screening expressions, and example code, but no backtest, trade results, or evidence that the conditions are predictive. Its formula and Python examples differ in their measures of price and trend, and the Python references a five-day average that is not defined in the shown setup. The stated caveats include reliance on a small set of technical conditions, incomplete consideration of price movement and fundamentals, and sensitivity to external market factors. It recommends broader analysis and risk review before using the screen.

Key ideas

• The proposed screen combines positive MACD with rising short-term averages.
• The opening price is intended to remain near the ten-day moving average.
• The formula and Python examples differ on whether to use the opening price or the high-low midpoint.
• The document presents no performance evidence and warns that the technical filters omit fundamentals and external market conditions.

Tags

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