Screening Small Profitable Stocks with Weekly MACD and Moving-Average Confluence

Summary

This proposed stock screen combines three conditions: market capitalization below 10 billion yuan, a company with no losses, and weekly MACD above the zero line. It also looks for at least five moving averages to converge, which the article interprets as price stability and a possible area of support or resistance. The stated rationale is to pair a technical momentum filter with a size limit and profitability condition.

The post cautions that technical indicators and company conditions do not guarantee future performance and recommends considering financial health and industry outlook as additional context. It supplies a short Python illustration, but the code does not clearly implement the five-average convergence test or a valid weekly MACD screen, and it is incomplete. No backtest, candidate list, or return evidence is shown, so the criteria should be treated as an unvalidated screening concept rather than an established strategy.

Key ideas

• The proposed screen requires at least five converging moving averages and weekly MACD above zero.
• It adds a market-cap ceiling and a no-loss profitability condition.
• The article recommends examining financial condition and industry prospects alongside the indicators.
• The sample code is incomplete and does not clearly implement all stated conditions.
• No evidence of screening or trading performance is provided.

Tags

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