A Volatility and Weekly MACD Screen for Chinese Equities

Summary

The document presents a stock-screening idea using amplitude above a threshold, a positive weekly MACD bar, and selection of stocks associated with 2021 activity. It also gives example implementations in indicator-formula and Python styles. The accompanying explanation interprets the amplitude condition as a volatility filter and the positive weekly signal as an indication of upward movement.

The author acknowledges that these technical conditions do not assess company quality, earnings, or valuation, and suggests adding other indicators, valuation measures, and data from surrounding years. The examples are described as references needing adaptation; the Python conditions do not cleanly match the stated weekly signal and year-based logic. No backtest, portfolio rules, transaction costs, or measured performance are provided, so the screen should not be taken as validated evidence of an edge.

Key ideas

• The proposed screen combines an amplitude threshold with a positive weekly MACD reading.
• The selection is framed around stocks active in 2021.
• The document suggests supplementing technical signals with valuation and other indicators.
• The sample implementation is illustrative and may not fully reproduce the stated screening logic.
• No performance evidence or trading-cost analysis is supplied.

Tags

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