Chinese Stock Screen Combining Positive MACD and Rising Lows
Summary
This Chinese stock-selection strategy screens for shares priced below 12 yuan, with MACD above zero and progressively higher rolling lows. The low-price condition is presented as a way to limit risk, while positive MACD is used to identify strength. The rising-low test compares minimum lows over 21, 63, and 250 trading-day windows, requiring each shorter-window minimum to exceed the longer-window minimum. The example also sorts qualifying names by a heat measure.
The article describes higher lows as a possible sign of trend reversal or strengthening, but acknowledges that the pattern may not reflect actual future price behavior. It recommends considering industry and fundamental factors, along with other technical indicators. No backtest or evidence of returns is provided, so the screen's claimed risk reduction and selection precision remain unverified; its price threshold and rolling windows are specific to the example.
Key ideas
- The screen requires positive MACD and a closing price below 12 yuan.\nIt defines rising lows by comparing minimum prices across 21, 63, and 250 trading-day windows.\nThe author treats higher lows as a possible indication of trend improvement.\nIndustry and fundamental context may be needed alongside the technical filters.\nNo performance test is reported to validate the strategy.
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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.