Chinese Stock Screen for Positive MACD, Positive P/E, and a Recent Turn

Summary

This Chinese equity screen is evaluated after each trading day and requires a positive MACD reading, a positive price-to-earnings ratio, and a negative MACD reading two trading sessions earlier. The proposed logic uses the earlier negative reading to identify a recent move into positive territory, while the positive P/E condition excludes firms with negative earnings under that measure. The article provides an indicator formula, a screening expression, and a sample ranking by market capitalization.

It warns that reliance on technical signals and past price behavior can miss fundamental risks, and that a two-day reference may not capture broader market changes. It suggests combining additional technical and fundamental information and refining the signal. The article gives no backtest or performance results. Its wording does not clearly distinguish the MACD line from the histogram in every part, so the signal definition should be checked before implementation; a positive P/E alone also does not establish that a stock is fairly valued.

Key ideas

• The proposed screen requires positive MACD, positive P/E, and MACD below zero two sessions earlier.
• The earlier negative reading is intended to identify a recent transition toward positive momentum.
• The article suggests combining technical signals with broader fundamental information and refining the timing condition.
• It cautions that historical indicators and a positive P/E do not remove market or company risk.
• No backtest is provided, and the precise MACD series used should be clarified.

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