Stock Screening with Moving Average Clusters, Morning Star Signals, and Dividends

Summary

This stock screen combines three conditions: at least five moving averages clustered together, a positive “morning star” signal, and a dividend payout ratio above 25% in 2019. The document describes moving average overlap as a sign of stable prices, the candlestick signal as a possible reversal indicator, and the dividend filter as a way to focus on shareholder distributions. It includes a coding example, but that example does not clearly implement the stated criteria: it compares exponential averages and uses a price ratio in place of the specified dividend measure.

The author cautions that the filters may exclude promising stocks and that technical signals can be misread. They suggest adding other screening criteria or trying different technical indicators. No backtest, performance evidence, definition of how the moving averages must overlap, or validation of the code is provided. The screen is therefore a rough selection concept rather than an established strategy.

Key ideas

• The screen requires at least five moving averages to cluster, a positive morning star signal, and a 2019 dividend payout ratio above 25%.
• The document interprets moving average overlap as price stability and the candlestick signal as a potential reversal.
• Its code example does not clearly implement the stated dividend and moving average cluster filters.
• The author warns that the filters can exclude candidates and technical signals can be misinterpreted.
• No backtest or performance evidence is reported.

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