Screening for Positive MACD, Rising Moving Averages, and Seven Down Days

Summary

This document outlines a stock screen that combines MACD above its zero line, upward-dispersing moving averages, and seven consecutive declining sessions. It interprets positive MACD and rising averages as technical trend conditions, while the sequence of down days is presented as a possible sign of negative market sentiment or a potential price bottom. The examples refer to MACD and five- and ten-day averages.

The author warns that the unusual combination may return few stocks, relies on technical and sentiment factors, and omits fundamental analysis. No test results or evidence of profitability are supplied. The sample Python logic also does not clearly implement all stated conditions: it compares closes with moving averages rather than checking candle direction, and its expressions may need correction to ensure the intended Boolean logic. The screen is best treated as an idea to verify and test, not a validated strategy.

Key ideas

• The screen combines positive MACD, rising moving averages, and seven consecutive down days.
• The document frames the losing streak as a possible sentiment or bottom-related signal, not a certainty.
• The author warns that the restrictive conditions may produce few candidates and omit fundamental factors.
• The sample code’s conditions do not clearly match the stated candle and moving-average requirements.
• No backtest results or profitability evidence are provided.

Tags

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