A Chinese Equity Screen Combining Volatility, Market Capitalization, and Weekly MACD

Summary

This post describes a Chinese equity screening rule using three conditions: amplitude above one, circulating market capitalization above 10 billion yuan, and weekly MACD above zero. The rationale is to combine price movement and company size with a trend indicator, seeking larger stocks with potential upward momentum. The post provides a screening formula reference and example code for applying the criteria to stock data.

The author warns that positive MACD does not rule out falling prices and that higher-amplitude shares can carry greater risk. The screen is described as simple and potentially vulnerable to misleading signals. Suggested refinements include adding financial measures, other technical indicators, and market context. No backtest results, performance statistics, or precise validation are supplied. The code and written rule also leave implementation details open, including the amplitude calculation and how weekly MACD is computed, so results may vary across data sources and screening platforms.

Key ideas

• The screen requires amplitude above one, circulating market capitalization above 10 billion yuan, and weekly MACD above zero.
• The method combines a volatility condition, a company-size filter, and a trend indicator.
• A positive MACD reading does not prevent a stock from declining.
• The post suggests adding financial measures, technical indicators, and broader market context.
• No performance evidence is given, and implementation details may affect the selected stocks.

Tags

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