Chinese Stock Screen Using Price Range, Rising Averages, and Weekly MACD

Summary

This Chinese stock-selection note combines three daily and weekly technical conditions: amplitude above 1, upward divergence among today’s moving averages, and weekly MACD above its zero line. The proposed rationale is that price movement and rising averages identify stocks with favorable near-term behavior, while the weekly MACD condition adds a longer-term trend filter. The article also includes sample screening logic and indicator expressions, but these are illustrative rather than a tested implementation.

The author cautions that the screen can select noise or be disproportionately affected by overvalued stocks, and recommends validation and risk controls. Suggested refinements include adding other trend or momentum indicators, such as moving-average crosses or RSI, and exploring machine-learning methods. No backtest, performance figures, execution rules, or detailed definitions of the screening conditions are provided, so the note describes a hypothesis for stock selection rather than evidence of an effective strategy.

Key ideas

• The screen requires amplitude above 1 and upward separation in the day’s moving averages.
• A weekly MACD condition is used to filter for a longer-term positive trend.
• The article proposes combining short-term price behavior with a higher-timeframe indicator.
• The author warns that noisy signals and overvalued stocks may weaken results.
• No backtest or performance evidence is presented.

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