Chinese Stock Screen Using Turnover, Stochastic K, and MACD

Summary

This note describes a Chinese equity screen combining turnover between 3% and 12%, a K value below 20, and positive MACD. It further frames selection around MACD behavior above the zero line, while its indicator example favors rising MACD and its Python example requires MACD to be nonnegative and at least as high as its signal line. These conditions are presented as a way to identify potential buy candidates.

The document provides formula and Python examples, but no historical test, performance figures, or evidence that the screen improves returns. Its descriptions of the signal are not fully consistent, particularly on whether a MACD cross or upward movement is required. It also warns that technical signals omit company fundamentals and broader market conditions, and recommends combining additional information with market context and position control.

Key ideas

• The screen selects stocks with turnover from 3% to 12%, a K value below 20, and positive MACD.
• The examples add upward MACD movement or require MACD to be at least as high as its signal line.
• The source describes the signal variants inconsistently, so implementation details need clarification.
• The note presents no backtest or performance evidence for the proposed screen.
• It cautions that technical indicators alone omit fundamentals and market conditions.

Tags

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