Chinese Stock Momentum Screen Using Weekly MACD and Rising KDJ

Summary

This note presents a technical stock screen using three conditions: daily amplitude above one percent, weekly MACD above zero, and a rising K value in the KDJ indicator. It describes the combination as a way to identify stocks with a favorable short-term trend. Formula references and a Python example using market data and technical-analysis functions illustrate how the conditions might be implemented.

The example also checks recent weekly price bars and uses a mean daily range relative to mean closing price, so its implementation does not exactly mirror every stated screening condition. The document reports no backtest, trade outcomes, or evidence that the screen produces returns. It cautions that technical signals omit company earnings and financial condition, and that market moves remain uncertain. Suggested additions include fundamental and capital-flow measures, risk controls, stop rules, and adjustments to indicators or screening periods, but these proposals are not tested.

Key ideas

• The stated screen combines daily amplitude above one percent, weekly MACD above zero, and a rising KDJ K value.
• The rationale is to identify stocks with positive short-term technical momentum.
• The sample implementation includes weekly price-bar checks and may not match the stated rules exactly.
• The document provides no performance evidence and advises considering fundamentals, capital flows, and risk controls.

Tags

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