Screening Chinese Stocks with MACD, Control Signals, and Moving-Average Alignment

Summary

This post outlines a Chinese stock-selection screen combining a positive MACD reading, a signal described as prior-day institutional control, and alignment among several moving averages. It presents the original screen as requiring at least five averages to align, then recommends loosening that condition to three and adding other relative-strength measures and an industry filter. The accompanying formulas and sample code illustrate indicator calculations and screening conditions, though the code includes unspecified conditions and relies on fields whose definitions are not explained.

The post argues that MACD above zero may indicate an upward trend, while moving-average alignment may identify stronger stocks. It also acknowledges that broad market weakness, overly strict alignment, and reliance on a single signal can produce poor or incomplete selections. No historical test, performance evidence, or precise definition of the institutional-control measure is supplied, so the proposed interpretation and screening efficacy remain unverified. Industry filtering and additional strength measures are suggestions rather than fully specified parts of a tested strategy.

Key ideas

• The initial screen combines positive MACD, a prior-day control signal, and alignment among at least five moving averages.
• The post suggests relaxing the moving-average condition to three and adding relative-strength and industry filters.
• It identifies broad market declines and single-indicator dependence as sources of screening risk.
• The institutional-control measure and some proposed filters are not fully defined.
• No backtest or performance evidence is provided.

Tags

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