Screening Chinese Stocks with Positive MACD and Trading Heat

Summary

This stock selection method screens after each trading day for shares whose MACD histogram is above zero and whose close is above the prior day's low. It then ranks qualifying names by reported stock heat, from highest to lowest, and the example code retains a small top-ranked subset. The document also gives the standard exponential moving average construction for MACD.

The rationale presented is that positive MACD may indicate short-term trend strength, heat reflects investor attention, and the close condition may favor shares with upward momentum. The text acknowledges that the rules omit fundamentals and broader market conditions, can concentrate selections, and may favor short-lived speculative moves. It suggests adding more indicators and macro context, but supplies no backtest results or evidence that the screen improves returns.

Key ideas

• The screen selects shares with a positive MACD histogram and a close above the previous day's low.
• Qualifying shares are ranked by stock heat after the market close.
• The article interprets MACD and the close condition as short-term momentum filters.
• The author notes risks from concentration, missing fundamentals, and ignored market conditions.
• 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.