A Chinese Stock Screen Using MACD, Price Range, and Fundamental Filters

Summary

The proposed Chinese stock screen combines an amplitude threshold above 1, MACD above the zero line, and a negative MACD reading from two days earlier. The document interprets the range condition as evidence of volatility, the current MACD condition as bullish, and the earlier negative reading as a recent pullback. It then recommends adding company fundamentals, industry outlook, and financial condition, with KDJ and RSI as possible additional technical filters. The article provides formula and Python references for expressing the screen, but these examples are not accompanied by backtest results or a clear trading plan. The amplitude formula’s scaling and the MACD crossing condition would need careful interpretation before implementation. It also does not define portfolio construction, entry and exit timing, or risk limits. The text explicitly cautions that technical indicators omit fundamental information and that the screen can lose money in adverse market conditions; its suggested refinements are proposals rather than demonstrated improvements.

Key ideas

• The screen selects stocks with amplitude above 1, MACD above zero, and MACD below zero two days earlier.
• The setup is presented as combining volatility with a possible recovery after a short-term pullback.
• The document suggests adding fundamental, industry, KDJ, or RSI information to broaden screening.
• Its formula examples lack backtest evidence and do not specify execution, exits, or position sizing.
• Technical conditions alone may miss company-specific information and can incur losses in unfavorable markets.

Tags

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