Chinese Stock Screen Using Weekly MACD, Daily Range, and a Sharp Intraday Drop

Summary

This Chinese equity screen combines a daily high-low range above 1% of the previous close, a weekly MACD condition above the zero axis, and a current-day low between 4% and 5% below the prior close. The post presents the drawdown filter as a way to identify stocks under selling pressure that might retain rebound potential, while the weekly indicator is intended to add trend context. It includes formula and Python examples for applying the conditions.

No returns, sample evaluation, or backtest results are provided. The post warns that a day’s maximum decline may not reflect the longer-term trend or a company’s fundamentals, and that technical indicators have limitations. It recommends combining the screen with volume, market capitalization, other factors, fundamental analysis, and risk controls, then validating it through longer-term testing. The code examples describe different approximations of the stated MACD condition, so the implementation would need careful review before use.

Key ideas

• The screen combines daily range, weekly MACD, and a current-day drawdown filter.
• The daily low must fall within the stated 4% to 5% loss band from the prior close.
• The post offers no performance evidence or backtest results.
• It cautions that technical conditions do not capture fundamentals or the full trend.
• It recommends adding other factors and validating the rules with testing and risk controls.

Tags

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