Stock Screening with Weekly MACD, Moving Average Confluence, and Limit-Ups

Summary

This stock-selection post combines three filters: at least five moving averages converging, weekly MACD above zero, and more than two limit-up sessions within the previous ten days. It frames moving-average convergence as a sign of price stability, positive weekly MACD as an upward trend signal, and repeated limit-ups as evidence of short-term activity.

The post questions those interpretations, noting that moving averages, MACD, and recent limit-ups can each be misleading and omit company, sector, and sentiment factors. It suggests adding more inputs, testing longer observation windows, and considering additional MACD signals. No backtest results or evidence of returns are supplied. The criteria describe a high-momentum screen in a market with limit-up rules, but the post’s explanations do not establish that the selected stocks will continue rising; simple historical filters may also behave differently across market regimes.

Key ideas

• The screen requires at least five converging moving averages and weekly MACD above zero.
• It also selects stocks with more than two limit-up sessions over the prior ten days.
• The post treats these signals as measures of trend stability and short-term activity but acknowledges they can mislead.
• It suggests broadening the inputs and testing longer time windows.
• No backtest results or profitability evidence are included.

Tags

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