Screening Stocks with Positive MACD, Positive P/E, and Prices Near the 10-Day Average

Summary

This document describes a daily premarket stock screen combining a positive MACD reading, positive price-to-earnings ratio, and a price near the 10-day moving average. Its formula operationalizes “near” as a low price within five percent above or below that average. The stated rationale is to favor stocks showing upward momentum, a positive earnings multiple, and prices near a short-term reference level. It also suggests ranking candidates by daily percentage change, though it provides no performance results or backtest evidence.

The screen has notable limits. A positive P/E alone does not establish sound fundamentals, and the article acknowledges market, selection, and moving-average data risks. Its rationale describes the opening price as the comparison, while the sample formula applies the range test to the low price; that difference should be resolved before implementation. The article proposes adding other indicators and further price filters, but does not test whether they improve outcomes.

Key ideas

• The screen combines positive MACD, positive P/E, and a price range around the 10-day moving average.
• The sample formula defines proximity as a low price between 95% and 105% of the average.
• The article proposes ranking selected stocks by daily percentage change but reports no backtest results.
• A positive P/E does not by itself establish strong company fundamentals.
• The prose and formula use different price references, so implementation requires clarification.

Tags

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