Chinese Stock Screening with Weekly MACD and Moving Average Filters

Summary

This document outlines a Chinese equity screening approach using three technical conditions: daily price amplitude above a threshold, weekly MACD above zero, and the stock price average above a short moving average. It presents the combination as a way to find active stocks with positive directional signals. It also includes indicator definitions and sample implementation references, though these are not accompanied by backtest results or performance evidence.

The method is explicitly limited: it omits company fundamentals and relies on short-term technical behavior, which may be unreliable in unstable markets. The document suggests adding fundamental, capital-flow, and industry measures, along with more detailed indicators and stronger risk controls. It does not specify portfolio sizing, entry and exit rules, or validation procedures, so the screen alone does not establish that selected stocks will rise or that the approach is profitable.

Key ideas

• The screen combines price amplitude, weekly MACD direction, and a moving-average condition.
• The author presents the criteria as a way to identify active stocks with potential upward momentum.
• The approach does not assess company fundamentals or provide evidence from strategy performance.
• Market instability may weaken signals based on moving averages and short-term technical conditions.
• The document recommends adding other data and risk controls before relying on the screen.

Tags

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