Screening Stocks with MACD, Revenue Growth, and Bounded Ten-Day Returns

Summary

This stock-screening example combines a positive MACD condition, multi-year revenue growth, and a bounded recent return. The proposed universe favors companies whose 2021 revenue is more than the stated multiple of 2018 revenue, while the ten-day price change must be positive but below a specified ceiling. The accompanying explanation interprets these as filters for upward momentum, business growth, and recent market strength.

The article cautions that revenue growth alone misses profitability and valuation, short-term indicators can overemphasize market noise, and a narrow screen may produce too few names or concentrate in particular sectors. It recommends considering longer-term trends, financial quality, valuation, and additional indicators. A code example is included, but its filtering operations do not consistently implement the stated conditions. No backtest or performance evidence is provided, so the screen remains an unvalidated illustrative rule set.

Key ideas

• The screen combines MACD above zero, revenue growth between two fiscal years, and a limited positive ten-day return.
• The rationale treats the filters as proxies for momentum, growth, and market acceptance.
• Revenue growth alone does not measure profitability, valuation, or competitive strength.
• Short-term price filters can be noisy and may create narrow or concentrated selections.
• The example provides no performance evidence and its sample implementation appears inconsistent with the stated screen.

Tags

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