A Stock Screen Combining Positive MACD, Positive P/E, and Seven Down Days

Summary

This Chinese stock-selection post proposes screening for shares with MACD above zero, a positive price-to-earnings ratio, and seven consecutive declining closes. The author interprets positive MACD as evidence of an upward trend, positive P/E as a basic valuation sanity check, and the run of losses as a possible short-term reversal setup. It also suggests sorting candidates by turnover-related activity.

The post provides indicator definitions and formula-style examples for identifying consecutive declines, along with a brief Python illustration. It does not report a backtest, return series, benchmark comparison, or evidence that the combination predicts rebounds. The code excerpt also relies on data fields that are not shown as being calculated in the example, so it is not a complete reproducible implementation. The author warns that a short losing streak can signal continued weakness, and recommends combining the screen with broader fundamental review and position-risk controls. This is best read as a screening hypothesis rather than a validated strategy.

Key ideas

• The screen requires MACD above zero, a positive P/E ratio, and seven consecutive lower closes.
• The author treats the losing streak as a possible short-term mean-reversion signal within a broader positive trend.
• The post suggests turnover-based ranking but provides no performance test for the ranking method.
• The examples describe the conditions but do not provide a complete, validated implementation.
• The author cautions that continued declines and omitted fundamental factors can make the screen risky.

Tags

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