Screening Chinese Stocks with MACD and Rising Moving Averages

Summary

This note describes an A-share screening rule combining positive MACD with an upwardly ordered set of five moving averages: 5, 10, 20, 30, and 60 days. The arrangement is intended to identify stocks with upward price momentum and trend alignment. It gives indicator formulas and sample screening logic, with an optional ROE-based ranking step.

The article offers no backtest or performance evidence for the screen. It cautions that technical signals can be false, chasing prices can lead to poor entries or exits, and ignoring company fundamentals leaves the investment assessment incomplete. The proposed refinements are to add risk controls and fundamental and other data, so the rule should be treated as a candidate filter rather than a complete strategy.

Key ideas

• Positive MACD is used as a condition for an upward market state.
• The screen requires five moving averages to be ordered from shortest to longest.
• The article suggests ranking qualifying stocks by ROE.
• It warns that technical signals can fail and should be combined with fundamental analysis and risk controls.

Tags

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