Chinese Stock Screening with MACD Contraction and Moving Average Confluence

Summary

This note outlines a Chinese equity screen combining at least five overlapping moving averages, positive returns, and a shortening MACD histogram on a 15-minute chart. It frames moving-average alignment as a sign of trend agreement, positive returns as evidence of recent strength, and shrinking negative MACD bars as a possible early turn toward upward momentum. The proposed process is a filter for candidate stocks rather than a complete trading system.

The note cautions that the setup emphasizes short-term technical signals and may miss longer-term trends, other indicators, or fundamental information. It suggests adding fundamental and technical filters and checking the longer-term trend. It offers no backtest results or performance evidence. Its illustrative code and screening description also leave parts of the process undefined, so the criteria would need precise definitions and validation before use.

Key ideas

• The screen requires five or more moving averages to converge or overlap.
• It also requires positive returns and a shortening MACD histogram on a 15-minute chart.
• The author interprets the combined filters as signs of aligned trends and improving short-term momentum.
• The note recommends adding fundamental information and longer-term trend checks.
• No empirical performance results are provided.

Tags

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