Screening for Stocks with Strong Weekly MACD and Sustained ROE

Summary

This stock screen combines a daily price-range condition, a weekly MACD condition, and a profitability filter. It seeks shares with an amplitude above 1, weekly MACD above zero, and return on equity greater than 15% in each of the previous five years. The accompanying explanation treats the technical conditions as signs of price strength and direction, while sustained ROE is intended to identify businesses with consistently strong returns on equity.

The document supplies indicator formula references and a Python sketch, but no backtest, portfolio results, or evidence that the screen predicts future performance. Its own caveat is that ROE alone does not capture valuation or the broader quality of earnings; it suggests adding measures such as valuation ratios and dividend yield. The examples also leave implementation details unclear, including the amplitude threshold's units and how weekly MACD is aligned with the other data, so those choices need careful definition before testing.

Key ideas

• The screen combines price amplitude, weekly MACD above zero, and five years of ROE above 15%.
• The rationale is to pair a technical trend condition with a measure of sustained profitability.
• The document offers formula and code sketches but reports no backtest or investment results.
• ROE alone does not assess valuation or fully describe earnings quality.
• The amplitude units and timing alignment require clarification in an implementation.

Tags

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