MACD and Trading Activity Filters for Ranking Chinese Stocks

Summary

This document describes a daily stock screen combining a positive MACD condition, ranking by stock popularity, and a threshold for buying-side versus selling-side activity. It presents MACD as a way to identify trend direction and popularity as a measure of market attention. The screen is intended to find stocks with signs of buying interest, with selection performed after the close.

The article includes example indicator and Python logic, though the code uses an OBV-to-moving-average ratio as a proxy for the activity threshold, which does not precisely match the prose description of outside volume versus inside volume. No performance evidence or backtest results are supplied. The stated limitations include neglect of company fundamentals, market and sector conditions, and possible measurement error in the activity ratio. The suggested improvements are to incorporate broader technical, fundamental, and capital-flow measures, then examine company and financial information after the initial screen.

Key ideas

• The screen combines positive MACD, stock popularity ranking, and a buying-side activity threshold.
• Selection is performed after each trading day closes.
• The examples use an OBV-based ratio that differs from the prose description of outside versus inside volume.
• The article gives no backtest or performance evidence.
• Fundamentals, sector conditions, and broader market trends are identified as missing considerations.

Tags

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