MACD-Positive Stock Ranking by Heat and Control Indicator

Summary

This daily, post-close stock screen selects shares with MACD above its zero line, a control indicator above a stated threshold, and ranks candidates by a heat measure. The article gives example formulas for MACD, a control proxy, and a heat ranking based on price and volume changes. It also mentions filtering out special-treatment and suspended stocks, and presents the screen as mainly suited to short-term trading.

The note supplies illustrative indicator formulas and a Python outline, but does not report backtest or live-trading results. The heat and control measures require implementation, and the author notes that the available control formula may differ from the intended daily measure. The article warns that market and industry conditions can affect selections, and that the control filter may introduce bias. It suggests supplementing the screen with other technical indicators and adjusting it as conditions change.

Key ideas

• Candidates must have MACD above zero and pass the stated control-indicator threshold.
• The screen ranks qualifying stocks by a heat measure and is run after the daily close.
• The examples include filters for suspended and special-treatment shares.
• The heat and control calculations need implementation, and the provided proxy may differ from the intended measure.
• The article presents the approach as short-term and gives no performance evidence.

Tags

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