Using MACD to Screen for Stocks

How to Screen for Stocks Using the MACD

Dr. Thomas K Carr

macdIn my previous two articles on the MACD indicator, I showed you several techniques using the MACD to determine the trend of the market and opportune buy and sell entry points.  I showed you a variety of  bullish and bearish trend signals whenever MACD crosses above and below the 0-line.  I described how the MACD Histogram can be used to determine bullish and bearish reversal in the market.  And I described how divergence between price and the MACD can be a strong determinant of future price direction.

In this final article in the series, I’m going to show you how I use the MACD indicator to find a short list of stocks that are setting up potential buy signals.  To do this, you will need a technical screening tool.  There are several available today suitable for this purpose.  I use Metastock and Esignal, both of which are prohibitively expensive for most novice traders.  If you are on a tight budget, you can use the screening tool in Stockcharts.com.  The illustrations below are from this tool.

This content is restricted to site members. If you are an existing user, please log in. New users may register below for FREE.

Existing Users Log In
   
New User Registration
*Required field
Tom
Dr. Thomas K. Carr (aka “Dr Stoxx”) is the Founder and CEO of DrStoxx.com which publishes 4 market letters every week, in addition to offering trader education and coaching services. Dr. Carr holds a D.Phil. degree from the University of Oxford and a Masters from Princeton. For 17 years he was a tenured professor to undergraduate students. He currently is a fulltime trader, market analyst, trading systems developer, and trainer of traders. The management company he founded, Kingdom Capital, trades accounts for private clients.

Dr. Carr is author of three bestselling trading books including, Trend Trading for a Living (McGraw-Hill, 2007), which has sold over 50,000 copies, with translations in Chinese, Japanese and Korean. Dr. Carr’s insights into the markets have been published in The Wall Street Journal, US News and World Report, Investors Business Daily, and Technical Analysis of Stocks and Commodities.

Tom

Dr. Thomas K. Carr (aka “Dr Stoxx”) is the Founder and CEO of DrStoxx.com which publishes 4 market letters every week, in addition to offering trader education and coaching services. Dr. Carr holds a D.Phil. degree from the University of Oxford and a Masters from Princeton. For 17 years he was a tenured professor to undergraduate students. He currently is a fulltime trader, market analyst, trading systems developer, and trainer of traders. The management company he founded, Kingdom Capital, trades accounts for private clients. Dr. Carr is author of three bestselling trading books including, Trend Trading for a Living (McGraw-Hill, 2007), which has sold over 50,000 copies, with translations in Chinese, Japanese and Korean. Dr. Carr’s insights into the markets have been published in The Wall Street Journal, US News and World Report, Investors Business Daily, and Technical Analysis of Stocks and Commodities.

Translate »