A Chinese Stock Screen Using Amplitude, MACD, and Float Size

Summary

This stock-selection idea filters for shares with an amplitude above 1, MACD above its zero line, and a circulating share count no greater than 5.5 billion shares. The accompanying rationale treats amplitude as a volatility filter, positive MACD as a bullish signal, and a smaller float as easier to trade. It then recommends adding fundamental measures to reduce reliance on these technical and share-count conditions alone.

The document acknowledges that float size says little about a company’s intrinsic or investment value and that ignoring fundamentals can expose a trader to risk. It suggests combining technical and fundamental filters, but does not define those additional measures or specify entry, exit, or position-sizing rules. A sample implementation is provided, but it is only a reference and does not report backtest results, transaction costs, or evidence that the screening conditions predict returns. The strategy should therefore be read as a screening concept rather than a validated trading system.

Key ideas

• The screen selects stocks using amplitude, MACD above zero, and a circulating-share threshold.
• The stated rationale links amplitude to volatility and positive MACD to a bullish signal.
• The document warns that float size does not measure a company’s investment value.
• It proposes combining the screen with technical and fundamental measures.
• No performance results, execution rules, or complete risk controls are provided.

Tags

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