MACD, KDJ, and Profitability Filters for Stock Selection

Summary

This stock screen combines a positive MACD value with a newly formed KDJ bullish crossover and a positive net profit filter. The document presents the combination as a way to find stocks with an upward trend, a short term buy signal, and a basic profitability condition. Its indicator example checks whether the KDJ J line is above and rising while the D line is falling; the Python example also applies a circulating market capitalization ceiling and positive exchange trading flow conditions.

The article explains the logic and provides implementation examples, but it does not report a backtest, measured returns, or evidence that the screen predicts future performance. It identifies market moves, changing company fundamentals, indicator errors, and limited selection accuracy as risks. It suggests adding financial measures such as earnings per share or valuation ratios and testing further technical indicators, while offering no results for those refinements.

Key ideas

• A positive MACD reading is used as a filter for stocks with upward momentum.
• The KDJ condition identifies a bullish crossover with the J line rising and the D line falling.
• The screen requires positive net profit and the code example adds market capitalization and trading flow filters.
• The document gives no performance test and warns that indicators and fundamentals can change or mislead.

Tags

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