Screening Chinese Stocks by Price Range, Weekly MACD, and Recent Gains

Summary

The article proposes screening Chinese stocks using three conditions: daily high-low range greater than one percent of the previous close, weekly MACD above zero, and a daily price increase greater than five percent. It frames the range as a volatility filter, weekly MACD as a trend filter, and the recent gain as evidence of buying interest. It also sketches a Python workflow using Tushare data and TA-Lib to select stocks, though the sample implementation does not faithfully reproduce all stated conditions: it uses average daily range and checks MACD crossings rather than clearly calculating weekly MACD.

The article warns that the screen omits fundamentals and valuation, and that lagging indicators can miss turning points. It suggests adding fundamental, volume, liquidity, and market-flow analysis. No backtest results, transaction costs, holding period, or risk-adjusted performance are provided, so the screen should be treated as a rough candidate-generation idea rather than a validated strategy. The stated increase condition is a price-return measure, not a direct measure of position increases or capital inflows.

Key ideas

• The proposed screen combines a daily range threshold, positive weekly MACD, and a strong daily price gain.
• The article interprets these conditions as volatility, trend, and recent buying-interest filters.
• Its sample code uses daily data and does not clearly implement the stated weekly MACD and range conditions.
• The screen omits company fundamentals, valuation, liquidity controls, and documented performance testing.
• The daily gain condition measures price change, not a direct increase in investor positions.

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