A-Share Screen Combining Weekly MACD, Buying Activity, and Small Size

Summary

This note outlines a Chinese stock screen requiring today’s increase in holdings to exceed 5%, weekly MACD to remain above zero, and market capitalization to be below 10 billion yuan. The author reads the first condition as active buying, the MACD filter as an upward trend signal, and the size limit as a way to focus on smaller companies. The stated final logic also adds rankings for six-month returns and several profitability and valuation measures, though the article does not clearly reconcile those additions with the initial three-condition screen.

The discussion cautions that technical direction and company size alone do not establish financial strength, and that broad market volatility can weaken the approach. It suggests adding fundamental measures such as earnings capacity and valuation. A partial code example is included, but no completed implementation, backtest results, or evidence of profitability is presented. The screen is therefore a set of proposed selection rules, not a demonstrated trading system.

Key ideas

• The initial screen combines a greater-than-5% increase in holdings, weekly MACD above zero, and market capitalization below 10 billion yuan.
• The author interprets positive weekly MACD as evidence of an upward trend.
• The final selection logic also mentions return and fundamental or valuation rankings, creating some ambiguity about the complete screen.
• The note warns that technical signals and company size do not replace analysis of financial condition.
• No backtest results or performance evidence are reported.

Tags

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