Chinese Stock Screen Using Turnover, Reversal Candles, and Weekly MACD

Summary

The proposed stock screen requires daily turnover between 3% and 12%, a reversal-style candle pattern described as an engulfing or recovery setup, and weekly MACD above zero. The criteria combine trading activity, price behavior, and a positive trend indicator. A formula and sample data workflow are included to illustrate screening, but the examples differ in how they represent the pattern and MACD conditions.

The document warns that the screen omits fundamental factors such as company size and profitability, and that MACD can produce signals near market tops. It suggests adding fundamental and other price or volume measures and screening for possible MACD peaks. No backtest, returns, or other performance evidence is reported, so the method is a screening concept rather than a demonstrated strategy. The code's data fields and pattern definitions would need review before relying on its output.

Key ideas

• The screen combines turnover from 3% to 12%, a reversal-style candle condition, and weekly MACD above zero.
• The method uses activity, price pattern, and trend information together.
• The document provides illustrative formulas and code but no performance evaluation.
• Missing fundamentals and potentially late MACD signals are identified as risks.
• Pattern and indicator implementation should be checked because the examples do not align fully.

Tags

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