Weekly MACD and 30-Week Moving Average Stock Screen

Summary

This stock-selection method combines price range, weekly MACD, and a moving-average crossover. It first looks for stocks with an amplitude above 1, a positive weekly MACD histogram, and a weekly close crossing above its 30-week moving average. The article then proposes adding a price-to-book ratio filter between 1 and 5, although its sample code and formula descriptions are not fully consistent about which valuation ratio is used.

The rationale is that volatility and positive weekly indicators may help identify strengthening price action. The article provides example screening logic and code, but no performance results or test design. It also warns that the screen omits broader company fundamentals and that moving-average crossovers can produce false signals in volatile markets. The proposed filters are therefore candidate screening rules, not evidence of a profitable strategy; implementation details and the meaning of the amplitude threshold would need to be checked before testing.

Key ideas

• The screen combines amplitude above 1 with a positive weekly MACD histogram and a weekly cross above the 30-week moving average.
• The proposed refinement adds a valuation filter, though the article inconsistently identifies the valuation measure.
• The article provides formula and Python examples but reports no backtest or trading results.
• Moving-average crossovers may generate false signals, especially in volatile markets.
• The screen omits broader fundamental information and may need additional filters and validation.

Tags

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