Chinese Stock Screening with MACD, Large-Order Flow, and Dividend Ratio

Summary

The document presents a Chinese equity screen combining three conditions: MACD above its zero line, a price-change and very-large-order-flow condition, and a dividend ratio above 25% for 2019. It describes MACD as a trend filter and trading-flow data as a way to look for rising prices accompanied by buying activity. The article also gives indicator formulas and sample Python logic for calculating indicators and filtering stocks.

Its discussion flags several limitations: technical and flow measures leave out company fundamentals, dividend decisions can change with corporate priorities, and the specified dividend year may not suit every evaluation period. The suggested refinements include adding valuation, profitability, and industry information, clarifying how the dividend ratio is calculated, and reviewing the holding horizon and selected stocks. No backtest results or evidence of performance are supplied, and the sample calculations may not fully implement the stated screen. The criteria therefore describe a candidate-selection idea, not a validated trading strategy.

Key ideas

• The screen combines MACD above zero, a price-change and large-order-flow condition, and a 2019 dividend ratio above 25%.
• The article treats MACD as a trend signal and order-flow data as a measure of buying activity.
• It recommends adding fundamental measures such as valuation and return on equity.
• Dividend ratios depend on calculation choices and company policy, while the cited year can limit relevance.
• The document offers no backtest evidence that the screening conditions are profitable.

Tags

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