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Reversals scan

MACD Crossover Below Zero Screener

This scan finds stocks where the MACD line crossed above its signal line on the latest day while the MACD line is still below zero.

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 above signal and macd below 0

  1. MACD crossed above MACD signal
  2. MACD < 0

Find US stocks where the MACD line (12, 26) crossed above the MACD signal line (9) today; and the MACD line (12, 26) is below 0.

Formula view
crosses_above(macd_line(12, 26), macd_signal(9))
AND macd_line(12, 26) < 0
Example chart: MACD crossover below zeroDaily candles of a made-up sample stock with Lower panel: MACD line (amber) and signal line (blue), dotted line at 0. The shaded day is the day the scan fired.
  • 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 MACD line below zero means the 12-day EMA is below the 26-day EMA, so the short-term trend is still down. A bullish cross down there is an early sign that the fall is losing speed.

Early signals catch more of a new move when they work, but they also fail more often, because the main trend has not turned yet.

How traders use it

  • Use it to build a watchlist of possible turnarounds, then wait for the price to confirm, for example with a close above the 50-day average.
  • A cross far below zero after a long fall can mark a deeper low.
  • Keep positions small until the trend confirms.

Watch out for

  • In a strong downtrend, crosses below zero can repeat several times on the way down.
  • Falls driven by news often keep going, whatever MACD says.

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 does a MACD crossover below zero mean?

Momentum is improving while the short-term trend is still down. It is an early, riskier bullish signal.

Is a crossover above zero better?

Crosses above zero happen in established uptrends and are often more reliable, but they come later in the move.

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