A-Share Screen Using Positive MACD, Stock Heat, and Positive PE

Summary

This A-share selection method runs after the close and keeps stocks with a positive MACD reading and a price-to-earnings ratio above zero. It then ranks the survivors by individual-stock heat, from highest to lowest. The document explains MACD through its fast and slow exponential averages and signal line, and supplies formula and Python examples for filtering and sorting candidates.

The rationale is to combine a trend indicator, market attention, and a basic valuation condition. However, the article gives no test results or evidence that this combination predicts returns. It warns that MACD alone may not capture market conditions, stock heat can reflect speculation or bubbles, and the screen does not include deeper fundamental analysis. Suggested additions include other technical indicators and company metrics such as return on equity and leverage. The described ranking and filters define a candidate list, but do not specify portfolio sizing, execution, or exit rules.

Key ideas

• The screen selects stocks with MACD above zero and PE greater than zero.
• Candidates are ranked by stock heat after the market close.
• The proposed rationale combines a trend signal, attention, and a valuation filter.
• The document flags indicator limitations, speculative heat, and missing fundamental analysis.
• It provides no performance results or portfolio and exit rules.

Tags

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