Chinese Stock Screen Combining MACD, Market Heat, and Moving-Average Confluence
Summary
This daily stock screen combines a positive MACD reading with a ranking by individual-stock heat and moving-average confluence. The initial description calls for at least five overlapping moving averages, while the final proposed logic relaxes that condition to at least three and excludes suspended stocks. The document includes formula references for MACD, a heat measure based on price and trading activity, and an example confluence condition, alongside an incomplete Python sketch that leaves several required indicators undefined.
The stated rationale is to combine trend, market attention, and technical alignment. The article cautions that sentiment-heavy technical filters can produce volatile results, that demanding confluence may leave too few stocks for diversification, and that the screen may need further risk controls. It suggests adding fundamental measures and longer-term trend signals. No backtest or performance statistics are provided, and the discrepancy between the initial and final moving-average thresholds makes the precise rule unclear.
Key ideas
- The screen looks for positive MACD, ranks stocks by a heat measure, and filters for moving-average confluence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.