Stock Screening with Rising Moving Average, MACD, and RSI Threshold

Summary

The proposed stock screen selects shares with a rising 30-day moving average, an RSI below 65, and a rising MACD signal line (DEA). The intended logic combines a trend filter with momentum indicators and is presented as a way to find stocks whose current direction is upward. The document suggests longer-term holding and diversification, but provides no backtest, return figures, universe definition, rebalance schedule, or transaction-cost analysis.

The accompanying Python example calculates RSI, MACD, and the 30-day moving average from historical closes. However, its MACD condition checks whether the histogram is declining and skips the stock when the latest histogram is greater than or equal to the prior one. That conflicts with the stated requirement that DEA rise, and a declining histogram is not equivalent to a rising DEA. The article itself also notes that the screen omits fundamentals and volatility controls; the implementation and signal definitions need to be reconciled before evaluation.

Key ideas

• The stated screen requires RSI below 65, a rising DEA, and an upward-sloping 30-day moving average.
• The strategy combines momentum indicators with a moving-average trend filter for stock selection.
• The sample code uses a declining MACD histogram condition, which conflicts with the written rising-DEA rule.
• The document reports no backtest evidence and identifies missing fundamental and volatility considerations.

Tags

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