MACD Trend and Recent Price Spike Stock Screening

Summary

This stock selection method screens for shares with MACD above its zero line and at least one daily gain of 10% or more during the previous 25 trading days. It then ranks qualifying shares by a heat measure, described through a formula based on price, volume, and a five-period change in that measure. The scan is intended to run after each daily close. The document also gives indicator formula examples and partial Python guidance, but notes that the heat calculation needs to be implemented separately.

The article offers no performance results or tested comparison. It warns that relying on a single indicator can be risky, that broad market conditions can undermine the screen, and that high-return aims may require careful position sizing. It suggests combining the rules with other indicators and reviewing the conditions over time. The supplied examples contain implementation ambiguities, so the stated screening logic should be distinguished from a validated, reproducible trading system.

Key ideas

• The screen requires MACD to be above zero.
• A stock must have at least one daily gain of 10% or more in the prior 25 trading days.
• Qualifying stocks are ranked by a heat measure derived from price and volume activity.
• The article provides no backtest evidence and warns that market conditions may invalidate the rules.

Tags

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