Screening Stocks with Range, Positive MACD, and a Weekly Moving-Average Cross
Summary
The document proposes selecting stocks when their price range exceeds a threshold, MACD is above zero, and the weekly price series crosses above its 30-week moving average. It presents the range as a measure of movement, MACD as a trend indicator, and the moving-average cross as a signal of longer-term direction. Formula and Python examples illustrate an attempted implementation.
No backtest, performance results, or evidence of predictive value are reported, and the screen uses technical conditions without company fundamentals. The text recommends considering financial condition, industry prospects, and other market signals, potentially weighting several factors. Its implementation examples may not faithfully calculate the stated rules: the Python example uses daily data and a seven-period simple average as a weekly proxy, and its range calculation differs from the formula. The indicator definitions and cross logic should therefore be checked before any live use.
Key ideas
- The proposed screen requires a range threshold, positive MACD, and a weekly cross above a 30-week moving average.
- The document interprets the three conditions as activity, trend, and longer-term direction filters.
- It provides formula and Python examples but reports no test results.
- The selection rules omit fundamental information and may need additional risk controls.
- The Python example’s timeframe and calculations differ from the stated weekly rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.