Screening Chinese Stocks with MACD, Amplitude, and Daily Return Bounds

Summary

This document describes a Chinese equity screen combining three conditions: price amplitude above a threshold, MACD above its zero line, and daily price change within a bounded range. It explains the intended roles of these filters: amplitude gauges price movement, MACD signals trend direction, and the return band excludes larger rises and falls. It also gives example indicator formulas and a Python outline for applying the conditions to market data.

The approach uses technical and trading data only, so it may select companies without regard to financial health or industry prospects. The document cautions that a bounded daily return does not establish the direction of the full session’s trend. It recommends adding fundamental and market context, and combining factors thoughtfully. No performance results or validation evidence are provided, and the code’s calculations and thresholds should be checked for consistency before use.

Key ideas

• The screen requires amplitude above a threshold, positive MACD, and daily return between stated bounds.
• The document presents amplitude, MACD, and price change as complementary technical filters.
• It warns that technical conditions omit company fundamentals and may not reflect the full session trend.
• It suggests adding financial and industry information and combining factors when refining the screen.

Tags

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