Screening Chinese Stocks with Weekly MACD and Recent Limit-Ups

Summary

This stock screen combines daily price amplitude, weekly MACD position, and recent limit-up activity. It selects equities with amplitude above 1%, a weekly MACD reading above zero, and at least two limit-up days in the past ten days. The accompanying discussion frames recent limit-ups as a measure of short-term strength and MACD as a trend filter.

The article flags a central risk: repeated limit-ups may indicate that a stock has already become expensive, while the rules do not assess longer-term prospects. It suggests adding company fundamentals, sector context, and broader market conditions. Formula and Python examples are included, but they do not establish that the screen is profitable or robust; the code also leaves some details of indicator and limit-up calculations unclear. Treat the rules as a proposed screening recipe requiring precise implementation and independent validation.

Key ideas

• The screen combines daily amplitude, weekly MACD above zero, and recent limit-up frequency.
• It uses short-term price strength as a selection input alongside a trend indicator.
• The rules may favor stocks whose prices have already risen sharply.
• Fundamentals, sector context, and broader market conditions are proposed as additional filters.
• The examples provide no backtest evidence of profitability or robustness.

Tags

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