Combining MACD, Profit Growth, and Investor Attention in a Stock Screen

Summary

This Chinese stock selection method screens after each trading day’s close for shares with MACD above the zero line, parent-company net profit growth greater than 20% and no more than 100%, then ranks qualifying stocks by market attention. The document describes MACD as a short-term trend measure and attention as a way to prioritize securities already attracting interest. It also gives reference calculations for MACD and profit growth, plus an illustrative filtering and ranking example.

The article offers a rationale for the combined conditions but no backtest, benchmark, or evidence that the ranking improves returns or reduces risk. It notes that reported profit growth can be affected by disclosure timing and data quality, and that a narrow growth band may exclude other worthwhile companies. It recommends checking additional technical and fundamental factors and reviewing businesses and financial condition before making decisions. The screening recipe is a candidate-generation method; it does not specify portfolio construction, trade execution, or risk controls.

Key ideas

• The screen selects stocks with MACD above zero and parent-company net profit growth above 20% and at most 100%.
• It ranks qualifying stocks by a market-attention measure after the close.
• The document flags financial reporting timing and data quality as sources of screening error.
• It provides no performance evidence and recommends broader company and indicator analysis.

Tags

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