Combining MACD, Positive Earnings Valuation, and a Price-Recovery Filter

Summary

This A-share screening proposal combines three conditions: MACD is above zero, the price-to-earnings ratio is positive, and the current close is above the prior day’s low. The note interprets the MACD filter as a sign of an upward trend, the valuation condition as a basic earnings screen, and the prior-low comparison as evidence of short-term recovery. It also gives the standard exponential moving average construction for MACD and a sample ranking step based on daily percentage change.

The document provides no backtest or performance results, so it does not establish whether the combination produces useful returns. It cautions that MACD can lag turning points and that closing above the previous low alone does not establish investment quality or an appropriate holding period. It suggests adding indicators such as RSI or DMI and considering company fundamentals and industry conditions. The supplied Python outline assumes data fields for MACD and valuation are already available, and its implementation details do not fully explain their calculation or data preparation.

Key ideas

• The proposed screen requires positive MACD, positive price-to-earnings, and a close above the previous session’s low.
• The note treats the filters as trend, valuation, and short-term recovery checks.
• A sample ranking sorts qualifying stocks by percentage change.
• The document gives no backtest evidence and cautions that MACD may lag turning points.
• Additional technical and fundamental context may help assess the candidates.

Tags

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