Stock Screening with Positive Daily and Weekly MACD

Summary

This stock-selection method combines positive MACD readings with a qualitative screen for favorable company characteristics. It treats a positive MACD as a sign of expansion and a positive weekly MACD as evidence of an overall upward trend. The accompanying example also filters for valuation, trading activity, and stock history, though these implementation details are not fully aligned with the stated selection rule.

The document provides indicator formulas and Python examples, but no backtest results or performance evidence. It warns that company data may be stale and that technical filters can overlook cyclical fundamentals. It suggests adding valuation measures and other indicators, while leaving “good company characteristics” undefined. The code’s weekly calculations and filters do not cleanly establish that both daily and weekly MACD conditions are applied consistently, so the screen would need careful validation before use.

Key ideas

• The stated screen requires MACD above zero on both daily and weekly horizons.
• A favorable but undefined company-quality assessment is part of the proposed selection logic.
• The examples add valuation, liquidity, and trading-flow filters beyond the headline rule.
• The document provides no performance evidence and cautions that stale data and cyclicality can undermine screening.

Tags

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