MACD and Order-Flow Filters for Chinese Stock Selection

Summary

This Chinese stock-screening strategy combines a positive MACD reading with a company-type filter and a ratio of external to internal trading volume above 1.3. It is framed as a way to select stocks using both technical conditions and trading activity. The document provides a platform formula and a Python example that scans securities, obtains recent price and money-flow data, and checks the MACD condition.

The author cautions that technical signals and market activity can change temporarily, and that the volume ratio is imperfect. The proposed improvement is to add financial information and examine signals across different approaches. No performance results, backtest, or rules for position sizing and exits are supplied. The Python example also checks MACD by comparing its latest value with the signal line, which is not identical to the stated positive-MACD condition; the screening logic should therefore be validated before use.

Key ideas

• The screen requires MACD above zero, a specified company type, and an external-to-internal volume ratio above 1.3.
• The document gives both a platform formula and a Python scanning example.
• The strategy uses technical and trading-activity data without reporting performance evidence.
• The author notes that the volume ratio can be misleading and suggests adding financial data.

Tags

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