Chinese Stock Screen Using Weekly MACD, Amplitude, and Valuation

Summary

This post describes a Chinese stock selection screen combining daily price movement, a weekly MACD condition, a low nominal share price, and a price-to-earnings filter. Its final stated rules require amplitude above 1, a positive weekly MACD histogram, price below 12, and PE below 20. The accompanying examples show how the author expresses these conditions in stock screening formulas and Python, including a volume-based ranking step.

The rationale is that higher amplitude may indicate active movement, while a positive weekly histogram is treated as evidence of an upward trend; the price cutoff selects lower-priced shares. The post flags that nominal price does not establish intrinsic value and that sector and company fundamentals are omitted. It proposes adding valuation and volume measures, but provides no backtest results or evidence that the filters are profitable. The code is presented as a reference and may need adaptation to the reader’s data source and execution environment.

Key ideas

• The screen combines amplitude above 1 with a positive weekly MACD histogram.
• It filters for shares priced below 12 and PE below 20.
• The example also ranks candidates using volume relative to its recent average.
• A low share price alone does not establish that a stock is undervalued.
• The post gives implementation examples but no performance evidence.

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