Screening Stocks with MACD and Rising Moving Averages

Summary

This stock-screening idea combines a positive MACD condition with upward moving-average alignment and a price filter relative to the 30-day average. The accompanying example calculates MACD from exponential averages and compares the five-day and 30-day simple moving averages, then selects stocks whose close is above the 30-day average. The stated intention is to identify stocks with positive momentum while checking a broader trend measure.

The article characterizes the screen as technically focused and notes that indicator lag can delay entries. It also warns that using a single day’s conditions may miss multi-day developments and that the method does not assess long-term company fundamentals. It suggests adding other technical or fundamental measures and examining multiple periods. The document provides example formulas and code but no backtest, performance results, transaction rules, or evidence that the screen improves returns, so it is best understood as a basic screening template rather than a validated strategy.

Key ideas

• The screen requires MACD to be above zero and moving averages to show upward alignment.
• The example also requires the closing price to exceed its 30-day moving average.
• The moving-average and MACD conditions use recent price data and may lag market changes.
• The article notes that a single-day screen omits the evolution of signals across multiple sessions.
• No backtest or performance evidence is provided, and the screen does not evaluate company fundamentals.

Tags

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