Screening Stocks With Positive MACD, Attention, and Consecutive Declines

Summary

The document describes a daily, after-close stock screen that combines MACD above its zero line with high investor attention and a run of consecutive declining closes. It presents the MACD components and a reference implementation that filters and ranks stocks by a heat measure. The proposed rationale is to find actively watched shares that have recently weakened while the MACD condition remains positive.

The post provides no backtest, performance figures, or evidence that the combination predicts returns. It also flags important limitations: the screen omits company fundamentals, market and sector context, and may be overly restrictive. Its prose and sample code do not fully align on how the decline condition is calculated, so the exact rule would need clarification before implementation. The author suggests adding other fundamental and technical filters and researching companies after the initial screen.

Key ideas

• The proposed screen looks for stocks with MACD above zero and ranks qualifying names by attention.
• It also requires a sequence of declining closes, though the prose and sample code describe this condition differently.
• The selection is intended to run after each trading day's close.
• The document warns that the screen ignores fundamentals and broader market or sector conditions.
• No performance test is supplied, and the strict decline rule may leave few candidates.

Tags

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