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Short side scan · tested as a short trade

MACD Bearish Crossover Screener

This scan finds stocks where the MACD line crossed below its signal line on the latest day while the price is below the 50-day moving average. Chalni tests it as a short trade.

Run this scan in the live demoFree, no sign-up. The demo uses made-up sample data.

The exact rule

Type this in Chalni: macd crossed below signal and close below 50 day sma

  1. MACD crossed below MACD signal
  2. Close < SMA(50)

Find US stocks where the MACD line (12, 26) crossed below the MACD signal line (9) today; and the closing price is below the 50-day simple moving average.

Formula view
# tested as a short trade (profit when price falls)
crosses_below(macd_line(12, 26), macd_signal(9))
AND close < sma(close, 50)
Example chart: MACD bearish crossover in a downtrendDaily candles of a made-up sample stock with 50-day SMA; Lower panel: MACD line (amber) and signal line (blue), dotted line at 0. The shaded day is the day the scan fired.
  • 50-day SMA
  • Lower panel: MACD line (amber) and signal line (blue), dotted line at 0
  • Shaded day: the scan fired
Example from Chalni's made-up sample market, not a real stock. It shows the most recent time this scan fired in the sample US market, picked whether or not the trade worked.

What it means

A bearish MACD cross means short-term momentum has turned down. On its own it gives many false signals, so this scan adds a trend rule: the price must already be below its 50-day average.

Together, the rules look for rallies in a downtrend that are running out of steam: a common setup for short sellers and a warning sign for holders.

How traders use it

  • Holders can use it as a signal to tighten their stops.
  • Short sellers often enter after a weak bounce toward resistance.
  • Add low relative strength for weaker candidates.

Watch out for

  • Bear markets have sharp rallies that can hurt short positions badly.
  • Signals near major lows are risky.

Test it before you trust it

Every scan in Chalni sits an exam. First it runs on older data, the practice: each time it picks a stock, the stock is held for 10 trading days and 0.2% is paid in costs. Then it runs on newer data it has never seen, the exam. A scan that only works in practice has just memorised the past.

See the practice and exam results for this scan in the demo (on sample data; real data comes at launch).

Questions

What is a bearish MACD crossover?

When the MACD line crosses below its signal line, which suggests momentum is turning down.

Should I sell when MACD crosses down?

Some traders do, but it is safer to look at the price trend and support levels too, instead of acting on MACD alone.

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