Stock Screening with Moving-Average Convergence and Trend Filters

Summary

This note outlines an equity screen intended to identify stocks with aligned moving averages and positive trend conditions. It combines at least five overlapping moving averages with a weekly MACD above zero and a rising 30-day average. The overlap is presented as a sign of agreement across shorter and intermediate trends, while MACD and the 30-day average add positive momentum and trend checks.

The document gives no backtest, performance data, or operational detail for defining how close averages must be to count as overlapping. It cautions that the rules cannot reliably predict future prices and omit company fundamentals and management quality. It suggests adding indicators such as Bollinger Bands and using risk controls, but does not specify those methods. The provided code is incomplete, so the screen should be treated as a high-level idea rather than a tested trading system.

Key ideas

• The screen requires at least five moving averages to converge.
• It checks that weekly MACD is above zero and the 30-day moving average is rising.
• The rules aim to find stocks with positive short, intermediate, and longer-term trend signals.
• The document gives no performance evidence and warns that technical filters cannot account for fundamentals or unexpected market changes.

Tags

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