Screening Chinese Stocks with Weekly MACD, Range, and Lower Lows

Summary

This stock screening idea combines a daily range filter, a weekly MACD trend condition, and a lower daily low. The stated rules require the high-to-low range to exceed one percent of the previous close, weekly MACD to be above zero and above its signal line, and the current low to be below the prior day’s low. The intended application is to find Chinese equities with a positive broader trend that have experienced a pullback in the latest session.

The document gives indicator conditions and an illustrative Python-style workflow, but provides no backtest, performance data, or evidence that the rules predict future returns. Its explanation that a lower low indicates strengthened support is asserted rather than demonstrated. It also cautions that the simple screen omits market sentiment and suggests considering volume changes or capital flows. The supplied sample code describes a daily range calculation while the written rule specifies weekly MACD, so implementation details need careful checking before use.

Key ideas

• The screen combines a range greater than one percent of the previous close with weekly MACD above zero and its signal line.
• It also requires the current session’s low to be below the previous session’s low.
• The proposed interpretation is a pullback within a positive weekly trend, but the document supplies no performance evidence.
• Market sentiment is identified as a limitation, with volume and capital-flow measures suggested as possible additions.
• The example workflow’s range calculation may not match the written range rule, so implementation requires verification.

Tags

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