MACD and Fundamental Filters for Low-Priced Small-Cap Stocks

Summary

The post describes a stock-screening rule that combines a positive MACD reading with a share price below 12 yuan, market capitalization no greater than 10 billion yuan, and positive net income. Its stated rationale is to combine technical strength with company size and profitability filters. A sample workflow also ranks qualifying stocks by a popularity measure.

The author cautions that the screen omits broader market direction and industry cycles, and that a fixed capitalization boundary could exclude promising smaller companies. Suggested refinements include adding industry and market-trend analysis and comparing results across capitalization ranges. The text provides formula and code examples but no performance data, defined holding or trading rules, or evidence that the screen reduces risk or produces stable returns. The screening criteria therefore describe a candidate universe rather than a complete, validated investment strategy.

Key ideas

• The screen requires MACD above zero, share price below 12 yuan, capitalization at or below 10 billion yuan, and positive net income.
• The criteria combine a technical indicator with price and fundamental filters.
• An example workflow sorts the screened stocks by popularity.
• The post identifies market trends and industry cycles as omitted considerations.
• No performance evidence or complete trading and portfolio rules are provided.

Tags

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