Chinese Stock Screening with Weekly MACD Histogram and Daily MACD

Summary

This Chinese equity screen combines an amplitude threshold with two MACD-based conditions: a positive weekly histogram, described as a red bar, and a positive daily MACD reading. The article frames the amplitude filter as a way to retain stocks with price movement, while the weekly and daily signals are intended to capture favorable market direction across time frames. Its code example tests weekly and daily MACD histograms, so the implementation may differ from the prose description of daily MACD being above zero.

The article warns that the method relies on technical data and leaves company fundamentals out of the initial screen. It also notes the lag and possible error in technical indicators, recommending additional fundamental and technical filters and attention to broad market conditions. These suggestions are general rather than fully specified. The document provides example conditions and code, but no backtest, performance statistics, or demonstrated evidence that the screen predicts returns; its stated screening logic is not a complete validated trading strategy.

Key ideas

• The screen combines amplitude above one with a positive weekly MACD histogram.
• It also requires a positive daily MACD condition, though the example code tests the daily histogram.
• The article says the technical-only screen omits fundamental and broader market factors.
• It recommends combining more indicators and fundamental filters while accounting for indicator lag.
• No backtest results or performance evidence are supplied.

Tags

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