Screening Chinese Stocks with Range, MACD, and Buying-Pressure Filters

Summary

The document proposes screening stocks using three conditions: an amplitude threshold, MACD above the zero line, and a measure labeled today's control above a threshold. It interprets the range condition as evidence of greater movement, the MACD condition as a positive signal, and the control measure as indicating favorable sentiment and relatively strong buying. The supplied formula for the control filter combines an advancing close, a close above the open and daily midpoint, a strong close within the day's range, and higher volume than the prior day.

The note warns that the control threshold does not guarantee continued strength and suggests considering fundamentals and industry conditions alongside technical indicators such as KDJ or RSI. It gives formula and Python-like examples but no backtest, out-of-sample evidence, or implementation validation. The code also relies on reference and indicator functions whose definitions are not supplied, so reproducing the screen requires resolving those dependencies and checking the formulas, including the amplitude scaling.

Key ideas

• The proposed screen combines a minimum amplitude condition, MACD above zero, and a buying-pressure filter.
• The buying-pressure formula requires an advancing close, a close near the upper part of the daily range, and increased volume.
• The document cautions that the control measure does not guarantee continued stock strength.
• It recommends considering fundamentals and industry conditions, with other technical indicators as possible additions.
• No backtest or evidence of profitability is provided, and the sample code depends on undefined functions.

Tags

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