MACD and Moving Average Conditions for Chinese Stock Screening

Summary

This post describes a Chinese A-share screening rule combining a positive MACD reading, upward divergence between short and longer moving averages, and a MACD value below zero two sessions earlier. Its formula uses MACD above zero, a five-day moving average above a ten-day average, and a two-period lagged MACD below zero. The accompanying explanation interprets the current readings as signs of an upward trend and the earlier negative MACD as a prior weak phase.

The post also gives sample screening and ranking snippets, including ranking by return on equity, but reports no backtest or performance evidence. It cautions that a negative MACD two days earlier does not establish that a stock was in a bear market, entry timing can be inaccurate, and technical indicators omit fundamentals and broader market conditions. It recommends considering fundamentals and market context alongside the signals.

Key ideas

• The screen requires MACD to be positive while its value two sessions earlier was negative.
• A five-day moving average above a ten-day average is used as a rising-trend condition.
• The post proposes ranking qualifying stocks by return on equity.
• The signal alone does not confirm a bear market or provide reliable entry timing.
• Fundamentals and broad market conditions are suggested as additional inputs.

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