A-Share Screening with Positive MACD, Positive PE, and Reversal Patterns

Summary

This A-share stock screen combines MACD above zero, a positive trailing price-to-earnings ratio, and a reversal or engulfing-style condition. It is intended to run before each trading day’s open. The post explains these filters as a trend check, a basic profitability valuation screen, and a price-action signal, and provides formula and Python examples along with a default ranking by percentage change.

The material does not present backtest results or establish that the combined filters have predictive value. It warns that opening and closing prices can produce misleading reversal readings during unusual price moves, and that broad market volatility remains a risk. It suggests adding fundamental filters and periodically reviewing the rules, but gives no evaluation of those proposed changes. The stated rationale for a positive PE as a normal valuation is limited and does not address differences in earnings quality or sector valuation.

Key ideas

• The screen selects stocks with MACD above zero and a positive trailing PE alongside a reversal condition.
• It is designed to generate candidates before each trading session.
• The document warns that open-close price patterns may misstate direction during abnormal moves.
• No backtest evidence is supplied to support 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.