A-Share Screening with Positive MACD, Positive P/E, and No Prior-Day Limit-Up

Summary

This document describes a daily, after-close screen for Chinese A-shares. It selects stocks with MACD above zero and trailing P/E above zero, while excluding stocks that reached the specified limit-up threshold on the previous day. The accompanying explanation treats positive MACD as a sign of trend strength and positive P/E as a basic valuation filter. It also gives example indicator definitions and suggests sorting selected stocks by market capitalization.

The note warns that relying on technical indicators and recent price behavior can overlook fundamental risks, and that excluding only the prior day’s limit-up stocks does not eliminate the risk of chasing prices. It may also remove fundamentally sound companies. The article proposes combining additional technical and fundamental signals, adjusting the limit-up lookback period, and monitoring excluded stocks. It supplies no backtest or performance evidence, and the stated screening rules do not establish that the selected stocks are undervalued or likely to rise.

Key ideas

• The screen selects stocks with MACD above zero and positive trailing P/E.
• It excludes stocks that met the stated limit-up condition on the previous day.
• The suggested selection time is after each trading session closes.
• The article cautions that these filters can miss fundamental risks and exclude promising stocks.
• No backtest results are provided to demonstrate the screen’s effectiveness.

Tags

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