MACD, Rising Moving Averages, and Range for Stock Screening

Summary

This document describes a stock screen combining a positive MACD reading, a same-day upward spread between moving averages, and an intraday price range above a threshold. Its example calculates exponential averages to form MACD, compares five- and ten-day simple moving averages, and measures the high-low range relative to the close. The proposed screen is intended to identify stocks with a positive trend signal and notable price movement.

The article offers a formula and illustrative Python-style screening logic, but no backtest, market sample, or performance evidence. It also notes that the moving-average relationship may be temporary, a larger range can mean greater volatility, and MACD should be considered alongside other indicators. Suggested additions include other moving averages, trading volume, and momentum measures. The write-up’s formulas and prose are not fully consistent about MACD construction, and its code includes an unfinished condition, so implementation details need independent checking before use.

Key ideas

• The screen combines positive MACD, an upward crossing of short and longer moving averages, and a minimum price range.
• The example calculates MACD from exponential averages and compares five-day and ten-day simple averages.
• A larger daily range may signal volatility as well as trading opportunity.
• The article provides no performance test and recommends evaluating the signals alongside other indicators and volume.

Tags

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