Screening Chinese Stocks by Amplitude, MACD, and Region
Summary
The proposed stock screen selects shares with amplitude above 1, a MACD signal above the zero line, and an area other than Beijing. The text interprets higher amplitude as greater volatility and MACD above zero as a favorable buying condition. It also frames excluding Beijing-listed regional stocks as a way to limit exposure to policy-related volatility.
The document notes that this filter may miss attractive Beijing companies and may overemphasize volatility and MACD. It acknowledges that policy changes can affect stocks in other regions as well, and suggests considering regional policy and economic conditions alongside technical indicators. It supplies example screening expressions and code, but no backtest, performance results, precise validation of the threshold, or broader risk controls. The method is therefore a simple screening proposal, not evidence that the selected stocks will outperform.
Key ideas
- The screen combines amplitude above 1 with a MACD condition above the zero line.
- It excludes stocks associated with Beijing to reduce exposure to regional policy volatility.
- The document warns that this exclusion can omit promising companies.
- It recommends considering regional economic and policy conditions with technical signals.
- No backtest or evidence of performance is provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.