A-Share Screen for Positive MACD, Rising Averages, and Three Down Closes

Summary

This A-share screening idea combines a positive MACD reading, an upward separation or crossover of short moving averages, and three consecutive lower closes. The intended setup pairs a broader positive momentum condition with recent short-term weakness, potentially identifying stocks undergoing a pullback within a stronger trend. The document gives formulas for MACD, five- and ten-day averages, and the consecutive-decline condition, along with illustrative screening logic.

The article frames the setup as a technical selection rule rather than a complete trading system. It offers no performance test or evidence that the signal predicts reversals or profitable entries. It also warns that technical indicators can fail, three down days reveal only short-term price action, and fundamental support and risk controls matter. The moving-average wording is not fully consistent: the text says averages are diverging upward, while its sample condition checks a crossover from below. These details would need to be specified before implementation.

Key ideas

• The screen requires MACD to be above zero while recent closes have declined for three sessions.
• The moving-average component uses five- and ten-day averages, though the written description and sample condition differ.
• The setup mixes positive trend or momentum with short-term weakness and does not itself define an entry or exit.
• The article recommends combining technical signals with fundamentals and risk controls.

Tags

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