Stock Screening with Weekly MACD and an Engulfing Pattern

Summary

This note outlines a stock screen combining daily amplitude above 1, weekly MACD above the zero line, and a short-term engulfing-style price pattern. It treats the weekly MACD condition as a broader trend filter and the reversal pattern as a signal of a possible shift in short-term market sentiment. The note gives formula fragments and sample code as implementation references, but does not report a backtest, measured returns, or other evidence of predictive value.

The proposed logic is described inconsistently: the initial screen is technical, while the final wording says to add fundamental and market-context filters. The note itself recommends considering valuation, profitability, market conditions, and sector themes, and warns that the pattern’s usefulness may vary across regimes. The sample code is illustrative and its daily-data calculations do not clearly implement the stated weekly MACD condition, so the exact operational rules should be checked before use. The screen is best understood as a rough candidate-selection idea, not a validated strategy.

Key ideas

• The screen combines amplitude above 1, positive weekly MACD, and an engulfing-style pattern.
• Weekly MACD is intended to provide a broader trend filter.
• The pattern is presented as a possible sign of changing short-term sentiment.
• The note recommends adding fundamental and market-context checks.
• The implementation example may not match the stated weekly indicator logic, and no performance results are given.

Tags

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