A-Share Screen Using Positive MACD, Low Price, and 250-Day Trend

Summary

This note describes a daily pre-open screen for Chinese stocks. It combines a positive MACD reading, a share price below 12 yuan, and a previous close above the 250-day moving average. The example code calculates MACD and the long moving average from daily prices, then compares the latest quote with the price ceiling.

The document frames the rules as a mix of momentum and long-term trend filters, but provides no backtest, performance data, or evidence that the screen predicts returns. It also flags the lack of fundamental criteria, dependence on a moving average that may stop working under changing market conditions, and the risk of noise from a simple rule set. Its suggested improvements include adding valuation measures, testing other indicators, varying the price threshold, or optimizing parameters. The example implementation has data-interface and variable-reference limitations, so it is illustrative rather than a validated trading system.

Key ideas

• The screen requires positive MACD, a price below 12 yuan, and a prior close above the 250-day moving average.
• It is intended to run before each trading session.
• The note offers no historical performance evidence for the rules.
• Potential weaknesses include missing fundamentals, noisy signals, and reliance on a long moving average.
• The sample implementation may need adjustment to work with current data interfaces.

Tags

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