Chinese Stock Screen Using Weekly MACD and Three Consecutive Limit-Ups

Summary

This Chinese equity screening idea combines daily price range, weekly MACD, and a recent run of limit-up sessions. It seeks stocks with a daily high-low range above 1%, weekly MACD above zero, and three consecutive limit-up closes through the prior day. The article frames the range and MACD conditions as signs of volatility and an upward trend, while the limit-ups serve as a proxy for strong market interest.

The document provides indicator formulas and a sample screening workflow, but no backtest, performance figures, or evidence that the filters predict returns. It warns that repeated limit-ups can reflect speculative excess and that the screen depends heavily on market sentiment, so it may fare poorly when sentiment is unstable. It suggests adding measures such as net fund flows, the number of limit-up stocks, and market volatility to provide broader context.

Key ideas

• The screen requires daily amplitude above 1% and weekly MACD above zero.
• It also looks for three consecutive limit-up closes through the previous day.
• The strategy treats consecutive limit-ups as a sign of market enthusiasm, but they may also indicate overheated speculation.
• The article recommends adding market sentiment measures to the technical filters.
• No empirical performance evidence is provided.

Tags

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