Combining MACD, Valuation Ratios, and Company Quality for Shenzhen Stocks

Summary

This stock-screening approach combines a technical condition with company and valuation filters. It selects Shenzhen main-board shares whose MACD is above zero, whose company quality is considered favorable, and whose price-to-earnings and price-to-book ratios fall within specified ranges. The article presents this as a way to combine market conditions with fundamental and value considerations; it does not define how company quality is measured in a reproducible way.

The document includes a formula reference and a Python example that filters stocks by valuation, calculates MACD from daily closing prices, and retains positive MACD values. It also cautions that restricting the universe to one board can miss opportunities and risks elsewhere, and that P/E and P/B alone may overlook industry differences or misleading valuations. It suggests adding indicators, financial data, and industry context, but gives no backtest results or evidence that the stated thresholds improve returns. The screening rules therefore describe a candidate selection process rather than a validated investment strategy.

Key ideas

• The screen requires MACD to be above zero and applies P/E and P/B bounds to Shenzhen main-board stocks.
• It combines technical, company-quality, and valuation considerations, though company quality is not operationally defined.
• The Python example calculates MACD from daily closing prices and filters for positive readings.
• A single-board universe and limited valuation measures may omit relevant risks and opportunities.
• The document provides no performance results validating the screening thresholds.

Tags

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