Stock Momentum Screening with MACD, Rising Averages, and Recent Gains

Summary

The post describes a stock selection screen that combines MACD above zero, upward movement in short-term averages, and a positive but capped gain over the prior ten days. It interprets these conditions as signs of an upward trend while filtering out stocks with especially large recent gains. It also gives example indicator formulas and a ranking approach based on daily price change.

The document provides no backtest, return series, or comparison against a benchmark, so it does not establish that the screen is profitable. It flags the limits of relying on a short lookback and a small set of technical conditions, and suggests adding fundamental and industry context or other representative indicators. The accompanying example code and formulas are illustrative, and some details appear inconsistent with the stated logic, so they should be checked before implementation.

Key ideas

• The screen seeks stocks with MACD above zero and upward-moving averages.
• It restricts recent ten-day gains to a positive range below the stated cap.
• The post offers example formulas but reports no performance test or benchmark comparison.
• It recommends combining technical conditions with broader company and industry information.
• Some implementation details appear inconsistent and need verification.

Tags

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