A-Share Momentum Screen Using MACD, Positive Earnings Valuation, and Trend

Summary

This note describes a Chinese stock screen combining a positive MACD reading, positive price-to-earnings value, and a long-term rising-price condition. The trend condition is expressed through a comparison of the high and low prices over a long historical window. Selected stocks are then ranked by return on equity. The article also gives example indicator formulas and Python-style screening logic.

The rationale is that MACD above zero can indicate upward trend, positive PE excludes firms with negative earnings under this measure, and the price-range condition aims to identify stocks in a sustained advance. The document supplies no backtest, performance statistics, or evidence that these conditions predict returns. It cautions that MACD alone is incomplete, PE does not capture overall financial health, and historical price behavior may not persist. It suggests adding other factors and adapting the trend definition to current market conditions.

Key ideas

• The screen combines MACD above zero, positive PE, and a long-term price uptrend condition.
• Stocks passing the filters are ranked using return on equity.
• The article presents indicator formulas and example screening logic, but no performance evidence.
• The author notes that technical signals and PE alone provide an incomplete view of a stock.
• Historical price trends may not continue, so the screen may need broader analysis and adjustment.

Tags

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