Stock Screening with Turnover, Seven Down Days, and Positive MACD

Summary

This stock-selection idea combines turnover, a seven-day decline pattern, and a positive MACD reading. It targets stocks with turnover between 3% and 12%, seven consecutive down days, and MACD above zero, which the post interprets as a possible longer-term upward trend despite recent weakness. It includes sample formulas and Python logic, along with an additional amount-traded condition.

The author warns that technical signals can overlook company fundamentals and that MACD can lag, allowing a falling stock to be selected. The examples are not fully consistent: the formula checks a close relative to seven periods earlier and a custom concept indicator, while the prose describes seven down days and positive MACD; the Python checks also combine down candles with rising closes. No backtest or return evidence is given. The screen should therefore be treated as an unvalidated set of conditions, and its signal definitions need careful reconciliation before use.

Key ideas

• The stated screen combines turnover from 3% to 12%, seven consecutive down days, and MACD above zero.
• The author interprets positive MACD as evidence of a broader upward trend despite recent losses.
• The examples use differing conditions, so they may not implement the same screen.
• The document notes that technical screens omit fundamentals and that MACD can lag.
• No backtest or evidence of profitability is provided.

Tags

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