Chinese Stock Screening with Amplitude, Weekly MACD, and Earnings Rank

Summary

The document starts with a Chinese equity screen that excludes Beijing-listed shares, requires amplitude above 1%, and selects stocks whose weekly MACD is above zero. It then proposes a more restrictive variant: amplitude above 3%, a rising MACD below zero after a bearish cross, an earnings-per-share ranking in the top half, at least three screening factors, and a maximum of ten selected stocks. Formula and Python sketches illustrate parts of this revised approach, although some implementation details do not align cleanly with the prose.

The article warns that MACD alone can give a misleading trend signal and that relying on a narrow set of technical inputs can omit important information. It recommends adding indicators and company fundamentals. No backtest or performance evidence is presented, and the revised conditions change the original screen substantially. The selection rules should therefore be treated as a proposal requiring careful clarification and independent testing, not as a validated strategy.

Key ideas

• The initial screen excludes Beijing-listed shares and requires amplitude above 1% with weekly MACD above zero.
• The proposed revised screen raises the amplitude threshold to above 3% and adds MACD behavior, earnings ranking, and selection-count constraints.
• The example code and prose contain implementation details that do not align fully.
• The document cautions that MACD can mislead and recommends considering more indicators and company fundamentals.
• No backtest or evidence of performance is provided.

Tags

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