Combining MACD Momentum with Revenue Growth for Stock Selection

Summary

This Chinese equity selection approach combines a technical filter with a fundamental growth condition. It looks for stocks with MACD above zero and a rising DEA line, then requires revenue in 2021 to exceed its 2018 level by more than ten percent. The rationale is that positive MACD conditions indicate an upward trend, while the revenue comparison screens for companies with historical growth. The post also sketches a portfolio process with position limits and an exit when a holding falls sufficiently below its cost basis.

The material does not report backtest results or establish that the indicators predict future returns. It flags sparse fundamental coverage, reliance on a limited historical window, and exposure to macroeconomic changes. Suggested improvements include adding valuation and dividend measures and examining several years of financial data. The example code's precise indicator comparisons and data handling would need verification before implementation, so the stated rules are best read as a screening concept rather than a validated system.

Key ideas

• The screen requires MACD above zero and a rising DEA line alongside historical revenue growth.
• Revenue growth is treated as a company growth signal, while MACD represents price momentum.
• The example outlines position limits and a cost-based exit rule.
• The post presents no backtest or evidence of predictive performance.
• It recommends broader fundamental measures and a longer financial history.

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