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Stock Screening with Rising Bottoms and Weekly MACD Confirmation

Article SuperMind
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Summary

This stock screen combines price amplitude above a threshold, a rising-bottom condition, and weekly MACD above its zero line. It frames the weekly MACD filter as a way to confirm a longer-term upward trend. The document also recommends considering fundamentals and broader market conditions, and includes example indicator formulas and a partial Python sketch for applying the conditions.

The material gives no backtest results or evidence that the filters improve returns. It acknowledges that MACD can lag and that the screen may overlook overall market conditions, which can delay selection or weaken signals. The example code is incomplete: it refers to unspecified fundamental data and uses abbreviated calculations whose exact rolling-window behavior is not fully explained. The stated method is therefore a screening concept, not a complete, validated portfolio or trading system.

Key ideas

  • The screen combines amplitude, rising bottoms, and weekly MACD above zero.
  • Weekly MACD is used as a longer-term trend confirmation filter.
  • The document proposes incorporating fundamentals and broader market conditions.
  • MACD lag may make the screen less responsive to changing prices.
  • The examples are partial and provide no backtest evidence.

Tags

EquitiesChina marketsTechnical indicatorsMomentum

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