Screening Seven Consecutive Down Days with Turnover and Positive MACD

Summary

This note presents an equity screen combining turnover between 3% and 12%, seven consecutive non-rising closes, and a positive daily MACD reading. It frames the setup as a way to identify stocks that have recently weakened while retaining a positive trend signal. Formula and Python examples are included, but the stated close comparisons check that each of the prior seven closes is no higher than the latest close, which is not necessarily the same as seven consecutive down sessions.

The article explains that turnover, price sequence, and MACD provide different views of recent activity and direction. It reports no backtest, sample, or realized returns, so the proposed opportunity is not empirically established here. It cautions that technical conditions can overlook fundamentals and other market information, and that short-period MACD settings may produce false signals. It suggests considering other indicators and adjusting parameters to the stock and trading approach.

Key ideas

• The screen combines turnover in a stated 3% to 12% band with a seven-session price condition and positive daily MACD.
• The formula checks closes against the latest close, which may not represent consecutive declining sessions.
• The article supplies formula and Python examples but no performance testing.
• It warns that technical indicators can generate false signals and omit fundamental context.

Tags

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