Combining Relative Volume, Moving Averages, and MACD for Stock Selection

Summary

This Chinese-language post outlines an equity screening idea that combines three signals: rank stocks by relative volume, require the 5-, 10-, and 20-day moving averages to be aligned upward, and look for a 15-minute MACD histogram that is shrinking while the DIF line remains below DEA and turns upward. The intended combination uses trading activity, a daily trend filter, and a shorter-term momentum turn to identify candidates.

The post warns that relative volume reflects activity rather than fundamental value, while moving averages and MACD describe historical price behavior and may lag. It notes that sentiment and policy can affect selections, and suggests adding company financial measures and industry conditions. A proposed expanded screen mentions profitability, valuation, and industry ranking, but the article gives no backtest, performance evidence, or detailed implementation for that expanded version. The indicator rules are therefore a screening hypothesis, not evidence of expected returns; the stated ranking and signal definitions also leave portfolio construction and trade management unspecified.

Key ideas

• The screen ranks stocks by relative volume and keeps the highest-ranked names.
• It applies an upward 5-, 10-, and 20-day moving-average alignment as a trend condition.
• A 15-minute MACD turn is used as a shorter-term signal while DIF remains below DEA.
• The author identifies fundamental, industry, sentiment, and policy factors as potential additions or risks.
• The post supplies no performance test or rules for sizing positions and managing trades.

Tags

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