Screening Chinese Stocks with Rising Averages, Weak MACD, and High Range

Summary

This screen combines three technical conditions: price amplitude above 1%, a negative MACD reading from two sessions earlier, and a rising 30-period moving average. It is presented as a way to find volatile stocks with a developing upward trend despite a recent weak momentum signal, potentially identifying candidates for a rebound. The accompanying formula and sample trading code illustrate a possible implementation, though they do not provide validated results.

The document cautions that technical filters can overlook company fundamentals and broader, longer-term trends. It also notes that choosing a 30-period average is a subjective parameter. Suggested improvements include adding fundamental and industry analysis, considering multiple trend horizons, and adapting the average to the stock. No performance statistics or backtest findings are given, and the supplied examples use weekly bars, so the intended timeframe and threshold interpretation should be checked before practical use.

Key ideas

• The screen requires amplitude above 1%, a negative earlier MACD reading, and a rising 30-period average.
• The combination seeks volatile stocks whose longer indicator trend is up despite recent technical weakness.
• The document supplies formula and sample code but reports no strategy performance evidence.
• Fundamental conditions and longer-term trends may be missing from the screen.
• The moving-average period and implementation details need validation for the intended timeframe.

Tags

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