Screening Chinese Stocks with MACD, Three Down Days, and a Rising 30-Day Average

Summary

This stock screen combines three conditions: MACD above its zero line, three consecutive declining sessions, and a rising 30-day moving average. The intended interpretation is to find pullbacks occurring while the broader price trend remains positive. The article gives a formula reference and a Python-style screening example, then suggests adding financial fundamentals and considering market and sector conditions.

The document identifies reliance on historical prices and a small set of technical indicators as limitations, and notes the risk of mistimed entries. Its implementation details are not fully consistent: the prose specifies MACD above zero, while the example checks MACD against its signal line; the three-day condition is also implemented as an average return check rather than explicit consecutive declines. No backtest results, position exits, or risk controls are provided, so the screen is a candidate-generation rule rather than a validated trading system.

Key ideas

• The proposed screen looks for MACD above zero, three falling sessions, and a rising 30-day moving average.
• The setup aims to identify short pullbacks within a rising medium-term trend.
• The article recommends adding fundamental, sector, and broader market context.
• The sample code does not precisely implement every condition stated in the prose.
• No backtest evidence, exit rules, or portfolio risk controls are supplied.

Tags

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