Pre-Market Stock Screening with MACD, Positive P/E, and Net Order Flow

Summary

This stock-screening proposal selects candidates before each trading day using three conditions: MACD above zero, positive trailing earnings multiple, and a positive large-order net-volume measure. The article interprets the MACD condition as evidence of an upward trend, uses positive P/E as a basic profitability filter, and ranks stocks by large-order buying pressure. It sketches indicator logic and provides a Python example that combines price data, valuation data, and buy-versus-sell volume before sorting candidates by trading activity.

The document cautions that meeting the screen does not establish sound fundamentals or future gains. It also flags market uncertainty and possible delays or inaccuracies in net-flow data. The code and formulas are presented as references, and some data fields, ranking details, and implementation assumptions are not fully established in the article. No backtest results or risk-adjusted performance are supplied, so the screen should be treated as a candidate-selection idea that requires validation and clearer data definitions.

Key ideas

• The proposed pre-market screen requires MACD above zero, positive P/E, and positive large-order net volume.
• The author treats MACD as a trend filter and net volume as a buying-pressure measure.
• The example combines price, valuation, and transaction-volume data to rank candidates.
• Passing the filters does not establish strong fundamentals or predict a profitable trade.
• The article warns that net-volume data may be delayed or inaccurate and provides no backtest evidence.

Tags

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