Combining MACD, Moving-Average Alignment, and Auction Buying Activity

Summary

This Chinese A-share screening proposal combines a positive MACD reading, upward alignment of short moving averages, and an auction-period large-order buying signal. The described conditions use MACD above zero, a five-day average above a ten-day average, and a large-order activity filter. The post includes illustrative indicator formulas and a Python-style filtering and ranking outline that sorts candidates by return on equity.

The rationale is to identify stocks with upward momentum and signs of substantial buying interest. The author cautions that large-order activity can be misleading, single-indicator screens can generate false signals, and the approach omits broader fundamentals. The post recommends adding other evaluation measures and risk controls. It provides no backtest, execution details, or evidence that the proposed signals predict returns; its example formulas also do not fully explain how auction-period buying is measured.

Key ideas

• The screen requires MACD above zero and a five-day moving average above a ten-day moving average.\nIt adds a large-order buying activity filter intended to reflect demand during the auction.\nThe example ranks selected stocks by return on equity.\nThe post warns that large orders do not prove value and that isolated signals can be unreliable.\nNo performance testing or detailed auction-signal definition is supplied.

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