A Chinese Equity Screen Using Positive MACD and Recent Limit-Ups

Summary

This article describes a daily, after-close screen for Chinese stocks with MACD above zero, more than two qualifying limit-up days within ten days, and ranking by individual stock popularity. It defines a qualifying limit-up day as a daily gain of at least 10% accompanied by volume above the prior day. The suggested technical formula also calculates 20-day and 120-day moving averages, while its Python example attempts to filter candidates using MACD and moving-average conditions.

The author warns that stocks with repeated limit-ups can be volatile and may sharply reverse, that technical signals omit company fundamentals, and that a short recent window says little about long-term business prospects. Suggested additions include other technical measures, valuation inputs, and market capitalization. The article offers no backtest or performance evidence, and the code example does not fully demonstrate the stated popularity ranking. The rules should therefore be read as a proposed screen, not as a validated entry or portfolio strategy.

Key ideas

• The screen requires positive MACD and more than two qualifying limit-up days in a ten-day window.
• A qualifying limit-up day combines a gain of at least 10% with volume exceeding the previous day.
• The article proposes ranking qualifying stocks by popularity and running the screen after the close.
• The author highlights reversal risk and the limits of relying only on technical measures.
• No backtest validates the screening rules, and the code example does not fully implement the stated ranking.

Tags

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