Stock Screening with Positive MACD, Positive Earnings, and Moving Average Crossovers

Summary

This stock selection rule combines three conditions: MACD must be above zero, the price-to-earnings ratio must be positive, and short moving averages must cross upward through progressively longer moving averages. The article treats positive MACD as a trend filter, positive valuation data as a basic earnings-related screen, and simultaneous moving average crosses as a bullish technical signal. It also gives formula references and illustrative Python screening steps, then ranks selected stocks by percentage change.

The article warns that combining several entry filters can leave very few candidates and that results may depend on the observation window and company or industry characteristics. It offers no backtest, return data, or comparison with a benchmark. The Python example describes rolling averages as above one another, which does not by itself confirm that fresh crossover events occurred together; implementation details and data quality therefore matter when reproducing the stated rule.

Key ideas

• The screen requires MACD above zero and a positive price-to-earnings ratio.
• It combines upward crosses among moving averages with progressively longer lookback periods.
• The article presents a stock filtering example and suggests ranking qualifying names by price change.
• Multiple simultaneous conditions may make signals sparse, and the method is not supported by backtest results.

Tags

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