Screening Chinese A-Shares with MACD and Stock Heat

Summary

This post outlines a daily, pre-open stock screen that selects shares with MACD above zero after MACD was below zero two trading days earlier, then ranks candidates by a stock-heat measure. It presents the rule as a technical way to find stocks showing a recent shift in momentum and market attention. Indicator formulas and illustrative Python are included, but the example does not provide a complete, validated implementation of the ranking data or a backtest.

The post warns that a positive MACD reading does not guarantee a sustained advance and that the two-day lookback may be insufficient. It suggests adding fundamental filters and risk controls such as stop-loss or profit-taking rules. The supplied examples should be treated cautiously: the displayed formula and sample code have implementation ambiguities, including how the historical MACD condition is aligned with the price series. No performance results, transaction costs, or portfolio-level risk analysis are reported, so the screen is a starting specification rather than evidence of a profitable strategy.

Key ideas

• The proposed screen looks for MACD above zero after a negative reading two trading days earlier.
• Candidates are ranked by a stock-heat measure, with selection scheduled before each trading day opens.
• The post identifies short-term reversal risk and the limits of relying only on technical and attention measures.
• It recommends considering fundamental filters and explicit risk controls, but provides no performance evidence.
• The example formulas and code require careful validation, especially the alignment of the lagged MACD condition.

Tags

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