Screening Stocks with Positive MACD, Valuation, and Institutional Flow

Summary

The post describes a stock screen requiring MACD above zero, a positive price-to-earnings ratio, and positive institutional direction. It treats the MACD filter as an upward-trend signal, positive earnings valuation as a basic financial condition, and the flow measure as a proxy for institutional interest. It provides example formulas for MACD and price-to-earnings data, defines institutional direction using the difference between volume on up-close and down-close sessions, and shows sample screening and ranking logic.

The post does not report a backtest, benchmark, or evidence that these conditions predict future returns. It acknowledges that the rule is simple, depends on historical trends, and omits other influences on prices. Suggested additions include chart patterns, company financial analysis, and other flow measures. The flow proxy is based on session direction and volume; the document does not demonstrate that it reliably identifies institutional trading or buying intent.

Key ideas

• The proposed screen combines positive MACD, positive price-to-earnings data, and positive institutional direction.
• Institutional direction is approximated using volume on up-close sessions minus volume on down-close sessions.
• The post recommends considering financial measures, chart patterns, and additional flow indicators.
• The rule is presented without performance testing and may omit important price drivers.
• The volume proxy does not establish that the observed activity came from institutions.

Tags

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