Chinese Stock Screen Using Positive MACD and Rising Moving Averages

Summary

This document presents a technical screen for Chinese stocks that requires MACD to be above zero, short-term averages to be rising, and the 20-day moving average to exceed the 120-day average. The accompanying explanation treats these conditions as signs of positive momentum and a stronger short-term trend. It provides example indicator definitions and a screening expression, along with a volume-based sorting suggestion. The article also includes an illustrative Python query for applying similar conditions to stock data.

No backtest results or evidence of predictive performance are supplied. The article cautions that technical indicators describe historical price behavior and cannot ensure future gains, and that moving-average rules may miss short-term price moves. It suggests adding fundamental, technical, and capital-flow factors and periodically reviewing the screen. The precise definition of the phrase describing upward divergence is not fully aligned with the simple formula shown, so implementation details may need clarification before reproducing the intended rule. The screen is a candidate filter, not a complete trading or risk-management plan.

Key ideas

• The screen requires MACD above zero, rising short-term averages, and the 20-day average above the 120-day average.
• The stated intent is to identify stocks with positive momentum and a stronger short-term trend.
• The article gives example formulas and suggests ranking screened stocks by trading volume.
• It reports no backtest evidence and warns that historical indicator signals do not guarantee future performance.
• The described upward-moving-average condition is not fully specified by the simple formula, leaving some implementation ambiguity.

Tags

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