Chinese Stock Screening with Amplitude, Candle Shape, and Lagged MACD

Summary

This note presents a technical screen for Chinese stocks using daily amplitude above 1, a rounded or arc-like candle pattern, and a MACD reading below zero from two days earlier. It explains the amplitude condition as a way to find stocks with notable price movement, while the candle shape is intended to indicate more gradual movement. The lagged negative MACD is treated as a sign of weak sentiment and possible downward pressure.

The article offers an indicator formula and a Python example for combining the conditions, but no backtest, sample, or return evidence. Its implementation example identifies a Marubozu candle pattern, which may not match the described arc shape, and the text does not define the arc criterion precisely. It acknowledges that technical signals may be temporary and omit fundamentals, and suggests considering fundamental analysis, market risk measures, and longer time series before relying on the screen.

Key ideas

• The proposed screen combines amplitude above 1, an arc-like candle shape, and a MACD value lagged by two days.
• The article interprets negative lagged MACD as weak sentiment and possible price pressure.
• No testing results are provided, and the candle-pattern implementation may not match the stated shape.
• The author recommends adding fundamental and market-risk information and using longer histories.

Tags

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