MACD and Volume Ratio Screening with a Profitability Filter

Summary

This Chinese stock screen combines a positive MACD reading with a volume ratio between 1.5 and 6 and positive net profit. The rationale is to find shares with upward price momentum, stronger than usual trading activity, and a basic profitability signal. The article also suggests adding turnover, traded value, and further financial measures such as earnings growth and valuation ratios for a broader assessment.

The post gives a screening rule and sample implementation guidance, but it provides no backtest, performance results, or evidence that the conditions deliver low risk or high returns. It warns that prices can fall, fundamentals can change, volume can weaken, and price-limit rules do not remove trading risk. The supplied examples also differ in how they express the conditions, so the screen's precise calculation and timing would need verification before use.

Key ideas

• The screen requires MACD above zero, a volume ratio above 1.5 and below 6, and positive net profit.
• The author treats MACD as a trend signal and elevated volume as evidence of trading interest.
• The post proposes adding other volume and fundamental measures to refine stock selection.
• No performance testing is reported, and the listed conditions cannot eliminate market or company risk.

Tags

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