Screening Stocks with Positive MACD, Rising DEA, and Expanding Averages

Summary

The document presents a stock-selection screen combining three technical conditions: MACD above zero, the DEA line rising, and short-term moving averages expanding upward. Its example calculates MACD from exponential averages, computes five- and ten-period simple moving averages, and checks whether DEA is higher than its prior value. The moving-average condition is described as the shorter average crossing above the longer one. The post also proposes using positive year-over-year net profit growth as a fundamental filter.

It supplies indicator formulas and sample Python logic, but no backtest, transaction costs, portfolio rules, or measured results. Some details are unclear: the prose refers to expanding averages, while the example checks a crossover, and the referenced financial data source is not established. The post itself warns that sudden events, indicator instability, omitted factors, and changing market conditions may undermine the screen. Its suggestions to add indicators such as RSI or KDJ remain untested.

Key ideas

• The screen requires MACD to be positive and DEA to rise from its previous reading.
• The example uses five- and ten-period moving averages to define an upward crossover condition.
• A positive net profit growth threshold is proposed as a fundamental filter.
• The post provides indicator formulas and sample screening logic but no performance evidence.
• The method may be sensitive to sudden events, missing factors, and changing market conditions.

Tags

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