A Chinese Equity Screen Using MACD, Moving Averages, and Three Limit-Up Days

Summary

This document describes a short-term Chinese equity screen combining a positive MACD reading, upward separation between moving averages, and a stock that had three consecutive limit-up sessions on the prior day. It presents the conditions as signs of upward momentum and market attention, then gives formula and Python examples intended to illustrate how to filter and rank candidates. A separate ranking example orders stocks by return on equity.

The document offers no backtest, performance evidence, or precise operational definition for “upward separation.” Its sample consecutive-price equality condition does not clearly establish three limit-up sessions, and the Python example assumes indicator and financial data fields are already available. The author warns that chasing strong recent moves can lead to poor entries and that technical signals omit fundamental analysis. It recommends combining the screen with other indicators and fundamentals, while treating the approach as a short-term selection idea rather than demonstrated evidence of an effective strategy.

Key ideas

• The screen combines positive MACD, rising short and longer moving averages, and recent consecutive limit-up sessions.
• The proposed rationale is that these conditions indicate upward trend and elevated market attention.
• The document includes illustrative screening and ranking examples but does not report a backtest.
• Its sample formulas leave ambiguity about how moving-average divergence and consecutive limit-up days are measured.
• The author cautions against chasing price moves without considering fundamentals or other indicators.

Tags

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