Stock Screening with MACD Above Zero and Three Moving-Average Crosses

Summary

This screening note selects stocks with daily amplitude above 1%, a MACD condition associated with the zero line, and three moving-average cross conditions. The formula examples use 5-day versus 20-day, 10-day versus 30-day, and 20-day versus 60-day averages. The post presents these as simultaneous golden crosses, combining short- and longer-term price signals with a movement filter.

There is a notable discrepancy between the stated rules and the Python sketch: the formula describes crosses, while the Python checks whether prices and averages are already ordered in a bullish alignment. The amplitude formula also differs between examples, including a threshold expressed as 1 versus 0.01 and different reference prices. The author notes that technical-only screening omits company fundamentals and suggests incorporating financial condition and industry outlook. No backtest or evidence of predictive performance is included, so the screen is an illustrative set of technical filters rather than a demonstrated strategy.

Key ideas

• The proposed screen combines amplitude above 1%, a MACD zero-line condition, and three moving-average conditions.
• The listed average pairs are 5 versus 20, 10 versus 30, and 20 versus 60 days.
• The formula specifies crosses, while the Python example checks existing bullish alignment instead.
• The amplitude definitions and thresholds differ between the examples.
• The post recommends adding fundamental and industry information, and provides no performance evidence.

Tags

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