Chinese Stock Screen Using Volatility, 10-Day Gains, and Weekly MACD

Summary

The article presents a Chinese stock selection screen combining daily price movement with a weekly trend signal. It selects stocks with an amplitude above 1 and a 10-day gain between 0 and 35, then looks for a positive weekly MACD histogram. The rationale is to find shares showing both recent upward movement and a rising weekly trend.

It also includes indicator and Python examples, though the code contains additional moving-average, volume, and MACD conditions that do not map cleanly onto the stated screen. The author cautions that weekly histogram signals can be false and that short-term technical screens are vulnerable to volatility and noise. Suggested refinements include checking longer-term and sector trends and combining indicators such as MACD and RSI. The article provides no backtest results or evidence of profitability, and it notes that technical signals can overlook fundamentals.

Key ideas

• The screen combines amplitude above 1 with a 10-day gain greater than 0 and less than 35.
• A positive weekly MACD histogram is used as a signal of an upward trend.
• The article warns that short-term technical screens can produce false signals and react to market noise.
• It recommends adding longer-term trend, sector, and other indicator checks.
• The included code adds conditions beyond the screen described in the text.

Tags

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