Chinese Stock Screen Using MACD Trend and Short-Term Histogram Change

Summary

The document describes a Chinese equity screen combining an amplitude threshold above 1, a MACD condition above the zero axis, and a short-term MACD histogram change. Its analysis emphasizes volatility alongside a bullish momentum backdrop, with the histogram condition meant to capture a near-term shift. The final stated screen changes the histogram criterion to a positive value, while the earlier description refers to the histogram shortening, leaving the intended rule somewhat inconsistent.

It notes that short-term filtering may miss stocks with stronger long-term drivers and that the screen ignores fundamentals. It suggests adding technical and fundamental measures and adjusting indicator weights, including with machine learning. The provided formula and Python example are references rather than validated research: the document reports no backtest results, and its code does not clearly establish a valid 15-minute data calculation. Treat the criteria as an illustrative screening idea, not evidence of profitability.

Key ideas

• The screen combines price amplitude, a bullish MACD context, and a short-term MACD histogram condition.
• The final proposed rule requires the short-term histogram to become positive, despite earlier wording about it merely shortening.
• The author identifies the risks of short-term focus and excluding fundamental information.
• The code examples are not accompanied by performance evidence, and the 15-minute calculation is unclear.

Tags

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