Combining MACD, Two-Day Highs, and Dividend Screening for Stock Selection

Summary

The document describes a Chinese stock selection rule combining a MACD condition, a recent high, and a dividend-related filter. Its stated formula looks for MACD above zero, the current high matching the highest high over two days, and a 2019 dividend ratio above 25%. It also includes a Python example that scans constituents of a Chinese large-cap index and calculates MACD from historical daily prices.

The article cautions that short-term price indicators do not establish long-term value, and that dividend screening can overlook growth, valuation, industry conditions, and other fundamentals. It recommends combining additional factors and using more durable criteria. The code and prose are not fully aligned: the Python sample compares MACD with its signal line and checks a longer history’s maximum high, while its dividend field and threshold appear to refer to a different measure than the stated rule. No backtest results or evidence of profitability are reported, so the selection logic should be treated as an unvalidated screening example.

Key ideas

• The proposed screen combines MACD, a recent high condition, and a dividend-related filter.
• The article also presents a Python example using large-cap index constituents and historical daily prices.
• Short-term technical indicators alone may be unsuitable for judging long-term investment value.
• Dividend screening can miss growth, valuation, and business fundamentals.
• The example code does not precisely match the written rule, and no performance evidence is supplied.

Tags

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