A Small-Cap Stock Screen Using Weekly MACD and Capital Strength

Summary

This post outlines a Chinese equity screening idea that combines a market-capitalization limit, a history of no reported losses, weekly MACD above zero, and capital strength ranked from high to low. The stated rationale is to find smaller companies with positive business history and an upward trend, while prioritizing stocks that appear to attract stronger trading flows. It also suggests refining the flow measure by comparing inflows with outflows and pairing MACD with other indicators.

The post flags several limitations: flow measures may omit selling pressure, MACD can give misleading signals, and smaller stocks may have lower market attention and greater price fluctuation. It later proposes a different capitalization range, but the text ends mid-sentence and does not fully specify the revised screen. No backtest, performance evidence, precise definitions for the filters, or evaluation period is supplied, so the rationale remains a hypothesis rather than a validated strategy.

Key ideas

• The initial screen combines smaller market capitalization, no loss history, positive weekly MACD, and capital-strength ranking.
• Weekly MACD above zero is used as a trend filter.
• The post cautions that flow ranking can overlook outflows and that MACD can produce false signals.
• Small-cap stocks may have less market attention and larger price swings.
• The suggested revised capitalization range is incomplete, and no performance test is reported.

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