MACD and Trading-Heat Ranking for a Chinese Stock Screen

Summary

This daily stock screen selects shares whose MACD histogram is above zero and whose 30-day moving average is rising, then ranks qualifying shares by a measure of market attention. The document explains MACD using standard exponential averages and includes a Python example that filters the candidates and returns the highest-ranked names. Screening is intended to occur after each trading day’s close.

The rationale is that positive MACD and a rising average indicate short-term strength, while the heat ranking prioritizes more discussed stocks. The article provides no backtest or evidence that attention improves returns. It cautions that the rules omit fundamentals and broad market conditions, may produce a concentrated selection, and can favor short-lived speculative moves. It recommends testing thresholds and incorporating additional technical, fundamental, and macroeconomic filters, though it does not report results from such changes.

Key ideas

• The screen requires a positive MACD histogram and a rising 30-day moving average.
• It ranks qualifying stocks by market attention after the close.
• The document supplies an implementation example but no measured strategy results.
• The author identifies concentration, speculative behavior, and omitted fundamentals and market conditions as limitations.

Tags

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