Chinese Stock Screen Using Turnover, Reversal Candles, and MACD

Summary

This A-share screening approach combines turnover between 3% and 12% with a reversal-style price setup and a MACD reading below zero from two days earlier. Its accompanying formula adds further conditions, including price relative to 120-day and 250-day averages, positive daily change, volume above a threshold, and volume greater than 1.2 times its 38-day average. The article presents MACD as a trend-following measure and suggests that the negative reading may help filter candidates during a falling trend.

The document supplies formula and Python examples but no backtest results or measured evidence of higher selection success. It cautions that reliance on technical conditions can miss the broader market, sector behavior, and company-specific factors. The examples also merit review: the narrative’s timing for the MACD condition is not plainly aligned with the formula and code, and the Python excerpt does not implement all the stated turnover and reversal filters. Treat the rules as a screening hypothesis that requires precise specification and testing.

Key ideas

• The stated screen combines 3% to 12% turnover, a reversal setup, and a negative MACD reading from two days earlier.
• The formula adds moving-average, daily-change, and relative-volume conditions.
• The article recommends considering broad market and sector trends alongside technical signals.
• No performance results are provided, and the examples do not clearly implement all stated conditions consistently.

Tags

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