Chinese Stock Screen Using Amplitude, a Rounded Pattern, and Positive MACD

Summary

This Chinese stock-selection heuristic combines three chart-based conditions: amplitude greater than 1, a rounded price pattern, and a positive daily MACD reading. The accompanying formula operationalizes the rounded-pattern condition using the prior close’s position within the recent five-session high-low range, with a threshold below 0.6. The text characterizes the amplitude condition as seeking movement, the rounded pattern as relatively gradual price action, and positive MACD as a sign of stronger price momentum.

The article cautions that the screen may not adapt well when the broader market weakens and that MACD cannot account for macroeconomic influences. It proposes adding factors such as market capitalization, trading volume, or major-flow data and adjusting selections to market conditions. No Python implementation, backtest, or return evidence is provided. The rounded-pattern label is only loosely defined by the stated formula, and the document offers no parameter rationale or evaluation showing that the conditions reduce risk or improve selection.

Key ideas

• The screen requires amplitude above 1, a rounded-pattern condition, and positive daily MACD.
• The formula approximates the rounded pattern using the prior close’s position in a five-session range.
• The article interprets positive MACD as evidence of stronger price movement.
• It warns that broad market weakness and macroeconomic factors may undermine the screen.
• No Python implementation or performance test is supplied.

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