Screening Chinese Stocks with Intraday MACD and Rising Lows

Summary

The document proposes a Chinese equity screen requiring price amplitude above a stated threshold, a shortening negative MACD histogram on a 15-minute timeframe, and a rising-bottom condition. Its rationale is that greater movement may identify active stocks, while a contracting negative histogram and higher lows may signal a possible change in direction. It provides illustrative indicator formulas and a sample Python workflow for checking stocks against these conditions.

The screen is presented as a candidate-selection heuristic, not a validated trading strategy. The text cautions that higher lows do not prove a bottom and may be subjective or difficult to define consistently. It also suggests adding fundamental, market-cap, and liquidity filters, and adjusting criteria for market and industry conditions. The sample code uses historical and intraday data, but the document reports no backtest, returns, or robustness analysis; its formula and code examples may also differ in how they operationalize the prose conditions.

Key ideas

• The screen combines an amplitude threshold, a contracting negative MACD histogram, and a rising-bottom condition.
• The MACD condition is evaluated on a 15-minute timeframe.
• The proposed logic treats these signals as possible evidence of a developing reversal, not confirmation of a bottom.
• The document identifies subjective definitions and changing market conditions as limitations.
• It suggests adding fundamental, market-cap, and liquidity filters but provides no performance validation.

Tags

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