Use SMA, RSI, and MACD

Screening Filters

1. Simple Moving Average (SMA):

   • Purpose: The SMA is used to identify the overall trend direction by smoothing out price data over a specific period. It helps determine whether a stock is in an uptrend or downtrend.
   • Rationale: By applying SMA, the screener can identify stocks that are trading above their moving averages, which is a common bullish signal. For example, if the price crosses above the SMA, it suggests upward momentum.

2. Relative Strength Index (RSI):

   • Purpose: RSI measures the speed and change of price movements to identify overbought or oversold conditions.
   • Rationale: Stocks with an RSI in the 30-70 range are often considered to have balanced momentum, while those above 70 may indicate bullish momentum. This filter helps identify stocks with strong upward momentum without being excessively overbought.

3. Moving Average Convergence Divergence (MACD):

   • Purpose: MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a stock's price. It is used to identify potential buy or sell signals.
   • Rationale: A bullish MACD crossover (when the MACD line crosses above the signal line) is a strong indicator of upward momentum. This filter ensures that the screener captures stocks with confirmed bullish signals.

Why Results Match:

• The user's query specifically requested the use of SMA, RSI, and MACD to identify bullish momentum signals. The selected filters directly incorporate these three technical indicators, ensuring that the results align with the user's request.
• Each indicator contributes uniquely to identifying bullish momentum: SMA for trend direction, RSI for momentum strength, and MACD for confirmation of trend changes. Together, they provide a comprehensive analysis of bullish momentum.

Conclusion:
The selected filters perfectly match the user's request by incorporating the exact indicators (SMA, RSI, and MACD) they specified. These filters work together to identify stocks with strong bullish momentum, addressing the user's query effectively.