Screening Stocks with MACD and Moving-Average Alignment
Summary
The document describes a stock-selection screen combining MACD above zero, upward alignment among current moving averages, and a weekly five-period average crossing above a ten-period average. It interprets these conditions as evidence of positive momentum and a strengthening trend. It also includes indicator formulas and a Python-style example intended to filter Chinese equities using daily and weekly prices.
The article identifies several limitations: technical indicators may lag recent changes, the screen can select shares near a market top, and the crossover criteria are not precisely defined. It suggests adding fundamental measures and stricter combined filters, but gives no tested results demonstrating that these changes improve performance. The supplied example code and the prose do not fully specify or clearly reconcile every stated condition, so implementation details would need review before use. No backtest, transaction costs, or risk controls are reported.
Key ideas
- The screen combines positive MACD, rising daily averages, and a bullish weekly moving-average crossover.
- The article treats the conditions as trend and momentum filters for stock selection.
- It warns that lagging indicators can identify stocks that are already overbought or near a peak.
- Crossover definitions and the example implementation are not fully specified.
- No performance evidence or risk-control rules are provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.