Stock Screening with Weekly MACD and a 250-Day Moving Average

Summary

This stock selection method combines daily amplitude above 1, a positive weekly MACD histogram, and a prior-day closing price above the 250-day moving average. Its proposed refinement adds a market capitalization threshold above 2 billion and suggests monitoring moving average slope to help identify possible trend changes. Together, the conditions aim to screen for volatile stocks with positive weekly momentum and a price above a long-term trend measure.

The article notes that the screen omits company fundamentals and may perform poorly if market conditions turn or a stock’s fundamentals change. A price above its moving average can also be misleading when a trend is reversing. It provides sample formulas and partial Python logic but no backtest, performance results, or evidence that the thresholds improve returns. The code is illustrative and would need validation against the platform’s definitions of amplitude, weekly MACD, market capitalization, and historical prices.

Key ideas

• The screen combines amplitude above 1, a positive weekly MACD reading, and a close above the 250-day moving average.
• The proposed version also requires market capitalization above 2 billion.
• The moving average slope may help assess whether the longer-term trend is changing.
• The method omits fundamentals and can misread stocks during trend reversals.
• The article provides implementation examples but no backtest or performance evidence.

Tags

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