Stock Screening with Money Flow, MACD Shape, and 10-Day Returns

Summary

This post describes an equity screening recipe that ranks stocks by volume ratio, uses MACD to identify a purported rounded-bottom pattern, and limits the 10-day price gain to a stated range above zero and below 35. The intended logic is to find stocks with stronger recent trading activity, a possible technical reversal pattern, and positive but bounded short-term performance. It also suggests adding Bollinger Bands to check the chart pattern and valuation ratios such as price-to-earnings and price-to-book to refine the candidates.

The post offers qualitative explanations and cautions, rather than empirical support. It says high volume-ratio ranking may miss less-followed stocks, a rounded-bottom signal can fail, and the return filter can still admit risky or weak candidates. It provides no precise indicator definitions, entry or exit rules, holding period, position sizing, universe, backtest, or performance statistics. The proposed filters therefore describe a screening idea, not a validated trading strategy; readers would need to define the signals consistently and test costs, turnover, and out-of-sample behavior.

Key ideas

• The screen ranks stocks by volume ratio as a proxy for trading intensity.
• MACD is used to identify a possible rounded-bottom price pattern.
• The return filter selects stocks with positive 10-day gains below the stated upper bound.
• Bollinger Bands and valuation ratios are suggested as additional filters.
• The post gives no backtest or precise rules for turning candidates into trades.

Tags

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