Combining Rising Lows, Amplitude, and Lagged MACD for Stock Selection

Summary

This Chinese stock-selection rule combines amplitude above one, successively rising bottom levels, and a MACD reading below zero from two sessions earlier. The intended setup uses rising lows as a sign of improving price structure while retaining a lagged negative MACD condition. The document includes sample indicator and Python snippets, but those examples differ in how they represent amplitude and do not fully define the bottom calculation.

The article presents the screen as a technical filter rather than a validated trading strategy. It reports no backtest, selected-stock results, or evidence that the conditions predict gains. It notes that the approach omits company fundamentals and that parameter choices may affect selections across market conditions and timeframes. Suggested additions include volume, moving averages, RSI, and valuation measures, along with parameter review. Those additions are proposals, not tested enhancements, so the signal would require clear definitions and empirical evaluation before use.

Key ideas

• The screen combines amplitude above one, rising bottom levels, and a MACD value below zero from two sessions earlier.
• The text treats the pattern as a technical stock filter, not a tested strategy.
• The sample code does not fully clarify how amplitude and rising bottoms are calculated.
• The article warns that the rule omits fundamental information and depends on parameter choices.
• Volume, moving averages, RSI, and valuation measures are suggested additions without reported tests.

Tags

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