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Screening Stocks with Positive MACD and a Two-Day Closing High

Article SuperMind
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Summary

This stock-selection rule combines a positive MACD reading, exclusions based on specified company-type codes, and a close equal to the highest close of the current and previous trading day. The accompanying formula expresses these filters, while the Python example adds a liquidity-related volume screen and checks intraday price data. The two implementations are not fully aligned: the formula’s MACD condition differs from the example’s MACD histogram comparison, and their sampling details also differ.

The screen is intended to find stocks with positive momentum and a recent closing high. The document cautions that it relies heavily on technical and historical price data, omits industry and broader fundamental analysis, and does not address liquidity adequately. It recommends considering financial health, industry context, trading methods, and risk controls. No backtest, performance results, or precise rationale for the company-type exclusions is given, so the rule is not evidence of a profitable strategy.

Key ideas

  • The core rule requires positive MACD, specified company-type exclusions, and a close at the two-day closing high.
  • The Python example also filters by volume and uses intraday data.
  • The formula and Python example differ in their MACD conditions and implementation details.
  • The author notes omissions in fundamental, industry, and liquidity analysis.
  • No backtest or performance evidence is provided.

Tags

EquitiesTechnical indicatorsMomentumRisk management

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