Chinese Stock Screen Using Turnover, Seven Declines, and Weekly MACD

Summary

This Chinese-language article proposes screening stocks with turnover between 3% and 12%, a run of seven declining sessions, and a positive weekly MACD histogram. It presents the combination as a way to look for shares that may have reached a base and begun to rebound. A formula and a Python example are included as implementation references, though their condition details are not fully consistent: the examples add weekday and volume-to-price tests, and the formula’s labels and expressions leave some ambiguity about how the intended weekly signal is calculated.

The article provides no historical test, benchmark, or evidence that the screen predicts a recovery. It acknowledges that technical signals may miss volatile stocks that have bottomed after a longer decline, and that a weekly indicator cannot establish fundamental quality or future returns. It suggests adding fundamental measures such as return on equity or valuation, while emphasizing that any resulting selection still depends on timing and investor preferences.

Key ideas

• The proposed screen combines turnover between 3% and 12% with seven declining sessions and a positive weekly MACD reading.
• The article supplies formula and Python examples, but their additional conditions make the implementation less clear than the headline rule.
• The author suggests adding fundamental measures to filter technical candidates.
• No backtest or performance evidence is provided, and the technical conditions cannot establish future returns.

Tags

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