Chinese Stock Screening with Daily Range, Drawdown, and MACD

Summary

This Chinese A-share screening idea selects stocks whose intraday high-low range exceeds 1%, whose day low is between 4% and 5% below the prior close, and whose MACD is above zero. The rationale combines elevated volatility and a sharp intraday decline with a positive MACD reading, treating the combination as a possible rebound setup within a broader upward trend. The post includes example indicator and Python implementations, but their conditions do not fully match the stated screen: the Python checks a low below 95% of the prior close without an upper bound for the drawdown, and tests a positive MACD histogram rather than explicitly checking the MACD line above zero.

The author cautions that MACD alone is not a reliable buy signal and suggests combining it with trading volume or capital-flow measures and considering individual risk tolerance. No performance statistics or backtest results are provided, so the screen should be understood as a selection rule rather than an evidenced strategy.

Key ideas

• The screen requires an intraday range above 1% and a daily low 4% to 5% below the previous close.
• It pairs a sharp intraday decline with MACD above zero to seek potential rebound candidates.
• The sample Python condition omits the stated upper drawdown bound and uses a positive histogram as its MACD test.
• The post provides no measured performance and recommends using other indicators and risk controls.

Tags

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