Chinese Stock Screen Using Volatility, Weekly MACD, and Bollinger Bands

Summary

This stock-selection note combines three technical filters: daily amplitude above a threshold, a positive weekly MACD histogram, and a close between the middle and upper Bollinger Bands. It characterizes the amplitude condition as a volatility screen, the weekly histogram as an indication of upward movement, and the Bollinger position as a way to select stocks trading above the band midpoint without exceeding the upper band. Example formulas and partial Python code are included.

The implementation details are not entirely aligned: the Python example checks daily MACD rather than the stated weekly signal, and its amplitude cutoff is expressed as a percentage. The article offers no backtest or performance evidence and cautions that technical indicators have limitations and may omit company fundamentals. It suggests adding financial quality measures and other indicators, but does not specify a validation process or risk controls. The screen is therefore a candidate selection rule, not a demonstrated profitable strategy.

Key ideas

• The proposed screen requires elevated daily amplitude, a positive weekly MACD histogram, and a close between the Bollinger middle and upper bands.
• The stated rationale combines volatility selection with a positive trend and an intermediate band position.
• The sample Python logic uses daily MACD, which differs from the weekly condition in the strategy description.
• No performance evidence is reported, and the article notes that technical filters omit fundamental considerations.
• Fundamental measures and additional indicators are proposed as possible extensions.

Tags

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