Selecting Stocks with Positive MACD, Positive P/E, and Moving-Average Alignment

Summary

This daily stock-selection screen combines a positive MACD reading, positive trailing earnings valuation, and alignment among moving averages. It lists averages from short to long horizons, spanning 5 to 250 trading days, and describes selecting stocks after each market close. The intended rationale is to find shares with upward trend conditions while excluding companies with negative earnings multiples. The post also proposes ranking selected names by market capitalization.

The document provides indicator formulas and example screening logic, but no backtest or returns evidence. Its explanation treats positive MACD and moving-average alignment as signs of strength, yet does not define a tolerance for how close the averages must be to count as overlapping. The shown condition appears to require a specific ordered alignment or a sequence of crossovers, which may differ from the stated idea of having at least five averages converge. The post itself notes that ignoring average slopes, fundamentals, and changing market conditions can weaken the signal, and suggests adding risk controls.

Key ideas

• The screen selects stocks with positive MACD and a positive trailing price-to-earnings ratio.
• It considers moving averages from 5-day through 250-day horizons.
• The stated selection frequency is daily after the close, with market capitalization suggested for ranking.
• The provided formula may represent ordered alignment or crossovers rather than a general measure of average convergence.
• No backtest results are supplied, and the post flags risks from indicator dependence and market changes.

Tags

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