MACD and Stock Heat Screening with a 4%–5% Intraday Decline

Summary

This Chinese A-share screening idea combines a positive MACD reading with a ranking by stock heat and an intraday low between 4% and 5% below the previous close. It proposes running the screen before each trading day’s open. The rationale is to look for stocks with an upward short-term trend and high attention that have also experienced a sizable pullback. The document provides a MACD calculation and illustrative formula and Python snippets, but it does not report a backtest, performance figures, or evidence that the selected conditions predict returns.

The author cautions that relying on technical indicators can miss other market and company factors, while a short-term focus can overlook fundamentals and business changes. Suggested extensions include adding technical and fundamental filters and adapting indicator weights to market conditions. The examples have implementation ambiguities, including how the stated intraday decline is computed and whether the data fields and timing are available before the open, so the rules would need verification before use.

Key ideas

• The screen requires MACD to be above zero and ranks eligible stocks by a heat measure.
• It selects stocks whose intraday low is 4% to 5% below the previous close.
• The proposed selection time is before each trading day opens.
• The document gives indicator formulas and sample code but no performance evidence.
• It warns that technical-only, short-term screening can omit fundamental and broader market risks.

Tags

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