Combining Weekly MACD, Recent Limit-Ups, Amplitude, and Fundamentals

Summary

This proposed Chinese-equity screen looks for daily amplitude above 1, a positive weekly MACD histogram, and at least one limit-up event within roughly the past month. Its example implementation also adds a positive trailing-twelve-month return on equity filter. The accompanying code illustrates retrieving recent price and fundamental data, checking weekly MACD, and testing whether a recent high-limit price exceeded the closing price.

The article argues that these technical conditions may capture active stocks with recent upward movement, while acknowledging that the rules can be overly dependent on short-term trading activity and price fluctuations. It recommends combining technical signals with company financials, valuation, market trend, and risk preferences. The code is explicitly illustrative and requires adaptation; it offers no backtest, measured performance, or validation that the limit-up test precisely identifies the intended event. The proposed refinements are broader than the implemented example, which only adds a positive ROE condition to the stated technical filters.

Key ideas

• The proposed screen combines amplitude above 1, a positive weekly MACD histogram, and a recent limit-up event.
• The illustrative code adds a positive trailing-twelve-month ROE condition.
• The article identifies dependence on short-term price activity and omission of valuation analysis as risks.
• It recommends combining technical rules with fundamentals and market context.
• No backtest or performance evidence is provided, and the code may need adaptation.

Tags

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