Chinese Stock Screen Using MACD, Three Down Days, and Moving Averages

Summary

This Chinese stock-selection post proposes screening for shares with MACD above its zero line, three consecutive down days, and a 20-day moving average above the 120-day average. The combination is presented as a way to find stocks in a broader rising trend that have recently pulled back. Its accompanying code sketch checks MACD components and their recent direction, applies the moving-average comparison, and collects qualifying stocks for trading.

The post itself warns that MACD and moving averages can give imperfect or delayed signals, while strict criteria may leave too few stocks for diversification. It suggests adding fundamental information, loosening conditions, and maintaining multiple strategies. It gives no backtest results, transaction cost assumptions, or risk-adjusted performance evidence. The code conditions also do not exactly spell out the stated three-down-day rule, so the screening description and implementation should be reconciled before evaluation.

Key ideas

• The screen requires positive MACD conditions, three falling sessions, and a 20-day average above the 120-day average.
• The setup combines a longer-term trend filter with a short-term pullback condition.
• The post notes the risk of delayed indicators and an overly small candidate set.
• No backtest or performance evidence is reported, and the code sketch does not clearly implement the three-down-day condition.

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