Screening for Earnings Growth with Positive MACD and Short-Term Weakening

Summary

This stock-selection approach combines a positive MACD position above its zero line with year-over-year growth in parent-company net profit greater than 20% and no more than 100%. It also requires the 15-minute MACD histogram’s negative bars to shrink, which the note interprets as a possible short-term rebound or easing of weakness. The document presents these conditions as a blend of trend, earnings growth, and short-horizon price behavior.

It includes illustrative indicator and screening logic, but reports no backtest or realized trading results. Its risk discussion points to instability in short-term signals and limited coverage of broader market conditions. It suggests adding longer-term technical and fundamental measures, trading activity information, and risk controls, though its final proposed screen does not specify precise added filters. The description also leaves execution, position sizing, and exit rules open, so the criteria alone do not establish a complete or tested strategy.

Key ideas

• The screen requires MACD to be above its zero line.
• It filters for parent-company net profit growth above 20% and up to 100% year over year.
• It uses shrinking negative MACD bars on a 15-minute chart as a short-term signal.
• The document proposes broader indicators and risk controls but provides no performance evidence.

Tags

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