Combining MACD, Revenue Growth, and Limit-Up Frequency for Stock Selection

Summary

This Chinese stock-screening example combines a positive MACD reading with a revenue-growth filter and recent limit-up activity. It describes selecting equities whose 2021 revenue exceeds 2018 revenue by a stated ratio and that recorded multiple limit-up sessions within a short recent window. The accompanying rationale treats MACD as a trend or momentum signal, revenue growth as a basic growth check, and limit-up frequency as evidence of active trading.

The article flags important gaps: revenue alone omits profitability and other financial conditions, MACD can lag, and limit-up counts can reflect broad market conditions or liquidity rather than fundamental value. It suggests adding valuation, debt, and further financial or technical measures. The sample code sketches screening and portfolio handling, but its implementation details are inconsistent with the prose in places, and the document gives no performance evidence or backtest results. The rules should therefore be read as an illustrative screen, not a validated strategy.

Key ideas

• The screen combines MACD above zero with historical revenue growth and recent limit-up frequency.
• The rationale links the three filters to upward momentum, business growth, and trading activity.
• Revenue growth does not establish profitability or sound finances.
• Limit-up frequency can be affected by liquidity and market-wide conditions.
• The article proposes adding valuation, debt, and broader technical or fundamental measures.

Tags

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