Combining MACD Trend Filters with Rising Moving Averages for Stock Selection
Summary
The document describes a Chinese stock screen requiring MACD to be above zero on both daily and weekly views, alongside upward alignment among short-term moving averages. It interprets the daily conditions as signs of near-term upward direction and the weekly MACD condition as confirmation of a longer-term trend. It includes indicator definitions and sample screening logic, but does not present trade entries, exits, position sizing, or performance results.
The stated limitations are reliance on technical indicators without fundamental analysis and the possibility that several simultaneous filters leave very few candidates. The author suggests adding financial measures such as earnings and return on equity, or reducing the number of conditions. The sample material is an illustrative screening recipe; the document offers no backtest or evidence that it produces reliable returns.
Key ideas
- The proposed screen requires MACD to be positive on daily and weekly horizons.
- It also uses rising or upward-aligned moving averages as a trend filter.
- The document cautions that technical-only screening can be unstable and exclude too many stocks.
- It suggests adding fundamental measures or relaxing filters, but reports no performance testing.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.