Screening Chinese Stocks with Weekly MACD and Repeated Limit-Up Moves

Summary

This A-share selection rule combines three conditions: a daily range above 1%, weekly MACD above zero, and at least two limit-up events within a 500-day lookback. The document presents repeated limit-up moves as a possible sign of strength, with the range and MACD conditions adding price-activity and trend filters. It includes indicator formulas and an outline for applying the conditions to stock data.

The method is a technical screen, not a complete trading system: it does not specify entry timing, exits, position sizing, or portfolio rules. The article notes that technical indicators omit company fundamentals and industry conditions, while limit-up moves may reflect speculation or other unusual factors. It recommends incorporating financial and trading-liquidity measures, but provides no backtest or performance evidence to show that the screen predicts future returns.

Key ideas

• The screen combines a daily range above 1%, weekly MACD above zero, and at least two limit-up events over 500 days.
• Repeated limit-up moves are treated as a possible strength signal.
• The criteria define a stock selection filter rather than a full entry-and-exit strategy.
• Technical indicators and limit-up events can miss fundamental, industry, and speculative influences.
• The document suggests adding company financial and liquidity measures, but reports no performance validation.

Tags

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