Equity Screening with Positive MACD, Rising Averages, and a Price Band

Summary

This document describes a Chinese equity screen requiring MACD above zero, upward-moving averages, and a share price within a range. Its rationale is that positive MACD and rising averages indicate upward momentum; the post’s narrative first mentions a price of 18.5, while its proposed final rule replaces that exact price with a bounded range. It provides indicator formulas, a sample filter, and a volume-based ranking approach, but no backtest or evidence of realized performance.

The post cautions that simple filters can produce noisy signals, an overly narrow price condition can exclude other candidates, and concentration may limit diversification. It suggests combining technical and fundamental factors, treating price as a flexible band, and considering market, company, and liquidity risks. The example implementation and narrative do not fully align on the moving-average condition or price bounds, so the precise screen cannot be reproduced without additional definitions. Its recommendations are proposals rather than demonstrated improvements.

Key ideas

• The proposed filter combines positive MACD, rising moving averages, and a price range.
• The post associates positive MACD and rising averages with upward momentum.
• It identifies noise, narrow price selection, and concentration as possible weaknesses.
• The narrative mentions a specific price, but the final rule uses a range and leaves its bounds unspecified.

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