Stock Screening with Weekly Moving-Average Crossovers and MACD

Summary

This stock-screening proposal combines a price-range condition with a weekly moving-average crossover and a lagged MACD reading. It targets stocks whose trading range exceeds a stated threshold, whose weekly five-period average crosses above the ten-period average, and whose MACD histogram was below zero two sessions earlier. The post also suggests excluding stocks with an upper price limit event and offers indicator formulas and a Python example as implementation references.

The accompanying discussion warns that the screen relies heavily on technical indicators and short-term price movements, with no fundamental analysis, and suggests adding company performance measures. It provides no backtest results or evidence that the rules predict returns. The sample code’s handling of the moving-average crossover and MACD data does not clearly match the written rules, so implementation details need independent checking before use.

Key ideas

• The proposed screen combines a price-range threshold, a weekly moving-average crossover, and a lagged negative MACD histogram condition.
• The post includes indicator definitions and sample screening logic as implementation references.
• It proposes excluding stocks that have reached an upper price limit on the latest trading day.
• The author notes that technical-only screening omits company fundamentals and may carry substantial market risk.
• No performance evidence is provided, and the sample code may not faithfully implement the stated rules.

Tags

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