Screening Equities with Positive MACD, Rising Moving Averages, and Listing Age

Summary

This article outlines a stock selection screen that combines MACD above its zero line, upward divergence among the day’s moving averages, and a minimum listing age. It interprets these conditions as signals of an existing upward state and trend, while using longer listing history as a possible way to avoid some risks associated with newer stocks. The article also suggests adding technical and fundamental measures to broaden the screen.

The evidence is descriptive: it supplies example MACD and moving-average formulas and a Python-style screening sketch, but reports no backtest, trade outcomes, or measured risk reduction. The implementation details are not fully aligned: the written rules refer to intraday moving-average behavior and an unspecified listing-age threshold, while the sample query uses weekly averages and a particular historical listing cutoff. The article itself cautions that technical indicators can be unreliable, older listings may have already experienced much of their trend, and listing-date data may need scrutiny. Treat the rules as an initial screen requiring validation.

Key ideas

• The proposed screen requires MACD above zero, upward-moving averages, and sufficient listing history.
• The article presents listing age as a possible filter for newer-stock risk.
• Its examples include indicator formulas and a screening sketch, but no performance evidence.
• The example implementation does not precisely match every condition in the written strategy.
• The author notes that indicator reliability and missed upside are limitations.

Tags

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