Screening Chinese Stocks by Turnover, Three Declining Days, and MACD

Summary

This stock-selection idea combines a daily turnover range of 3% to 12%, three consecutive declining sessions, and a daily MACD value above zero. The article frames positive MACD as a sign of market strength while looking for a short run of falling prices, creating a screen for stocks that may be pulling back within a stronger condition. It also includes example implementations for a Chinese stock platform and Python data workflow.

The article provides no backtest, return data, or comparison showing that the filters predict future gains. It acknowledges that the thresholds and selection timing can affect reliability, and that the screen may select unsuitable stocks. Suggested refinements include adding listing age, market capitalization, industry, fundamentals, or other price and volume measures. The examples should be treated cautiously: the stated turnover condition and the Python example’s calculations do not appear to implement the same filters consistently.

Key ideas

• The screen combines turnover between 3% and 12%, three declining sessions, and daily MACD above zero.
• The author interprets positive MACD as evidence of a stronger market condition despite recent declines.
• The article offers example code but reports no tested performance or predictive evidence.
• Additional filters and validation may be needed, and the provided implementations contain apparent inconsistencies.

Tags

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