Screening Stocks with Positive MACD and Price Above the 250-Day Average
Summary
This A-share stock screen combines a positive MACD condition with upward divergence among moving averages and a requirement that the prior day's price be above its 250-day moving average. The post presents the rules as a way to identify stocks with favorable technical direction and a price holding above a long-term trend reference. It includes example formulas for MACD and moving averages, plus a Python outline that uses a five-day average in relation to the 250-day average as a proxy for upward alignment.
No backtest, trade outcomes, or supporting performance evidence is provided. The author notes that price distance from a moving average does not establish fundamental value, that “upward divergence” needs a precise definition, and that alternative moving-average choices can change the results. The screen is therefore a technical filter whose interpretation and effectiveness would require clearer rule definitions and empirical evaluation.
Key ideas
- The screen requires MACD above zero, upward separation among moving averages, and the previous close above the 250-day average.
- The sample implementation uses five-day and 250-day moving averages to represent short- and long-term direction.
- Moving-average position is a technical trend signal and does not by itself measure fundamental valuation.
- The post gives no backtest results, and its upward-divergence condition needs a precise operational definition.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.