A Stock Screen Using Weekly MACD and a Bounded 10-Day Gain

Summary

This Chinese equity screening proposal combines three technical conditions: daily amplitude above 1, weekly MACD above zero, and a 10-day gain greater than zero but below 35 percent. The note presents positive recent performance as evidence of short-term upward movement, while the upper bound is intended to avoid selecting stocks that have already risen sharply. It includes formula and Python references, but supplies no measured strategy returns or backtest results.

The author identifies the screen's main limitation as its reliance on technical and trading data while excluding company operations, industry conditions, and policy risks. A 10-day return is a short-horizon signal and cannot establish long-term business strength. The note recommends considering fundamentals, earnings, sector trends, investment objectives, and risk tolerance alongside the technical filters. Its formula for the 10-day condition uses counts across observations, so implementation should be checked to ensure it tests the intended current-period return rather than a broader history.

Key ideas

• The screen combines daily amplitude, positive weekly MACD, and a positive but capped 10-day return.
• The return ceiling is intended to avoid stocks whose short-term gains have become excessive.
• The document gives formula and code references but reports no performance evidence.
• Fundamental, industry, and policy factors are omitted and may materially affect a stock's prospects.

Tags

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