Selecting Stocks with Positive MACD and Recent Limit-Up Activity

Summary

This stock-selection idea combines a positive MACD reading with a company-type filter and more than two limit-up sessions over the prior ten days. The stated rationale is to find stocks with an upward technical trend and recent market attention. The post includes examples of expressing the conditions in a screening formula and Python workflow, including calculating MACD and checking recent closes against their limit prices.

The author cautions that recent strength and market enthusiasm may not persist, and that a short-term screen can miss companies with longer-term potential. Suggested refinements include adding industry outlook, leverage, and other technical or fundamental measures, and adjusting conditions for different stocks or sectors. No backtest results, return statistics, or implementation details establish the strategy’s effectiveness. The written formula and code examples also do not fully resolve how the company-type condition is operationalized, so the screen would need careful validation before use.

Key ideas

• The screen looks for stocks with MACD above zero and more than two limit-up sessions in ten days.
• It combines a trend indicator with a measure of recent market attention.
• The post provides formula and Python examples for implementing parts of the screen.
• Recent strong performance may fade, and the approach can overlook longer-term opportunities.
• The document gives no performance evidence and leaves some screening details unclear.

Tags

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