Screening Chinese Stocks by Volatility and MACD Signal

Summary

This post proposes selecting Chinese stocks with price amplitude above 1, a MACD signal above the zero axis, and trading activity during 2021. It interprets larger amplitude as greater volatility and the MACD condition as a favorable buying signal. The date-based filter is presented as a way to require trading records in the specified year. The post gives formula references and a Python sketch, but reports no backtest, sample results, or evidence that the conditions predict returns.

The author cautions that a narrow technical screen may miss promising companies and recommends considering financial data and competitive conditions alongside the indicators, with attention to risk management. The description of the date filter and the example code are not fully consistent: the prose describes trading during 2021, while the formula uses a year threshold and the code also applies date bounds. The MACD formula is presented as a zero crossover condition, so its timing and whether the intent is to detect an ongoing positive reading should be clarified before implementation.

Key ideas

• The proposed screen combines amplitude above 1, a MACD zero-axis signal, and trading records during 2021.
• The post treats amplitude as a volatility filter and MACD as a directional signal.
• The document gives formulas and a code sketch but no performance test or results.
• It recommends adding company information and managing risk to reduce reliance on a single screen.
• The year filter and MACD condition need clearer implementation definitions.

Tags

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