A Stock Screen Using MACD, Positive Earnings, and Large-Order Flows

Summary

This note describes a Chinese A-share screening rule that combines MACD above zero, positive trailing price-to-earnings, and large-order net volume above a threshold for three consecutive days. It frames the MACD condition as a trend filter, positive earnings as a basic valuation or business sanity check, and persistent large-order flow as a sign of institutional interest. It also gives example indicator definitions and a proposed ranking by turnover.

The material is a rule sketch rather than a validated strategy. It provides no backtest results, universe definition, transaction-cost assumptions, or evidence that large-order net volume predicts future returns. The author cautions that the flow measure may be inaccurate and that selected names may not meet expectations, recommending additional indicators and broader analysis. The supplied code examples are references and should be checked for data availability and implementation consistency before use.

Key ideas

• The screen requires MACD to be above zero and the trailing price-to-earnings ratio to be positive.
• It also requires large-order net volume to exceed a threshold for three consecutive sessions.
• The proposed selection can be ranked by turnover, but no performance evidence is supplied.
• The author notes that the large-order measure may be unreliable and suggests combining other data.

Tags

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