A-Share Momentum Screen Using MACD, Moving Averages, and Bollinger Bands

Summary

This note outlines a technical screen for stocks with MACD above zero, rising short-term moving averages, and a closing price between the middle and upper Bollinger Bands. Its indicator examples use common MACD and Bollinger Band settings, and the accompanying screening outline also sorts candidates by trading volume. The method aims to select shares showing positive momentum while remaining within the upper portion of a volatility envelope.

The document presents no backtest, return history, or other evidence that the conditions are profitable. It warns that Bollinger Band settings affect results, a single-indicator approach omits other drivers, and a signal may not persist. It suggests combining technical and fundamental inputs, considering liquidity and market value, and adding stop levels. The written rule and sample implementation differ in their moving-average conditions, so the intended signal should be clarified before use.

Key ideas

• The screen combines positive MACD with a closing price between the Bollinger middle and upper bands.
• The rule also calls for upward-moving averages and ranks candidates by volume.
• Band parameters and changing market conditions can alter the selected stocks.
• The examples contain inconsistencies in how moving-average conditions are applied.

Tags

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