Stock Screening with Moving Average Confluence, Weekly MACD, and Dividends

Summary

This stock screen combines technical conditions with a historical dividend measure. It selects equities with at least five overlapping moving averages, weekly MACD above zero, and a dividend payout ratio above 25% in 2019. The article interprets moving-average overlap as possible trend alignment, positive weekly MACD as evidence of an upward trend, and the dividend threshold as a sign of shareholder returns.

It identifies market-wide price swings and company-specific financial or operating problems as risks, and suggests adding fundamental analysis and adjusting the time frame and indicator parameters. Its proposed refinements include monthly trend checks and combining technical screening with value or growth approaches. The article offers no backtest results or evidence that these conditions produce excess returns; it also mixes the original weekly condition with a later monthly-period recommendation, so the final rules are not fully consistent.

Key ideas

• The screen requires at least five moving averages to converge and weekly MACD to be above zero.
• It adds a 2019 dividend payout ratio threshold above 25 percent.
• The article treats these conditions as signs of aligned trends and shareholder returns, but does not provide performance evidence.
• It recommends considering company fundamentals and broader market and company risks.

Tags

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