Screening Stocks with Moving-Average Crossovers and a MACD Filter

Summary

This stock-screening proposal combines three moving-average crossover conditions with a volatility-related filter and a lagged MACD condition. It describes selecting shares when the crossovers occur together and MACD was below zero two sessions earlier, interpreting the combination as a possible shift toward upward momentum. It offers formula references and a Python-style example, and suggests adding valuation or company and industry analysis for broader screening.

The post provides no historical test, return data, or comparison against a benchmark, so its explanation of market sentiment is a rationale rather than demonstrated evidence. The volatility condition is described inconsistently: the prose refers to amplitude, while the sample uses turnover ratio and labels it as amplitude. The crossover logic and MACD calculation also require implementation-specific definitions and data handling. The screen therefore serves as a rough rule proposal, not a validated strategy; stock selection, survivorship, trading costs, and risk controls are not addressed.

Key ideas

• The proposed screen requires three moving-average crossovers to occur together.
• It filters for a MACD value below zero two sessions earlier.
• The volatility-related filter is inconsistent between the prose and code example.
• The document offers no backtest results to establish predictive value or profitability.
• It recommends considering fundamental and industry information alongside technical signals.

Tags

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