Stock Screen Using Turnover, the 10-Day Average, and MACD

Summary

This stock selection rule combines trading activity, price location, and a MACD condition. It keeps shares with turnover between 3% and 12%, an opening price within 5% of the 10-day closing-price average, and a bullish MACD crossover: DIF above DEA after having been below it on the prior observation. The article includes formula and Python examples that express these filters.

The author frames the setup as a short-term technical screen, but supplies no backtest, sample, or performance results. The article cautions that technical signals omit company fundamentals and suggests adding measures such as valuation ratios and market sentiment. The crossover condition is more specific than simply requiring DEA to rise, so implementations should follow the stated formula and verify how each platform defines turnover and MACD fields. The screen identifies candidates; it does not specify entries, exits, or position sizing.

Key ideas

• The screen requires turnover between 3% and 12%.
• The opening price must fall within 5% of the 10-day average closing price.
• A bullish MACD crossover is defined by DIF moving above DEA after being below it.
• The article warns that technical screening omits fundamental company information.
• No backtest or trading performance evidence is provided.

Tags

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