Stock Screening with Positive MACD, Rising Averages, and Revenue Growth

Summary

This document outlines a stock screen combining a positive MACD reading, upward-diverging moving averages, and a revenue ratio comparing 2021 with 2018 that must exceed 1.1. It also mentions using company fundamentals as supporting analysis. The accompanying formulas describe MACD and moving averages, while the Python example adds a positive net-income-growth filter and sorts companies by revenue growth.

The article offers a conceptual rationale: price indicators represent trend conditions, while revenue growth may reflect business development. It provides no backtest, sample results, or evidence of predictive value. The author cautions that revenue alone omits other technical and fundamental factors, can be volatile, and may not capture long-term market changes. Suggested refinements include screening for more stable growth, reducing the influence of extreme values, and broadening the fundamental and technical inputs. The code is illustrative and leaves important data handling and alignment details unspecified.

Key ideas

• The proposed screen combines positive MACD with upward-moving averages and a revenue ratio above 1.1.
• The revenue comparison uses 2021 and 2018 figures, with additional fundamentals suggested as supporting filters.
• The Python example also includes a positive net-income-growth criterion.
• The article provides no backtest or measured evidence for the screen.
• Revenue volatility, omitted factors, and changing market conditions are named as limitations.

Tags

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