Screening Large-Cap Chinese Stocks by MACD Histogram Contraction and Inflows

Summary

This proposed Chinese equity screen ranks stocks by reported capital inflows, keeps those with a circulating market value above 10 billion yuan, and looks for a shortening MACD histogram on a 15-minute chart. The combination is intended to identify liquid, influential shares with buying interest and a possible short-term shift toward rising prices. It also suggests adding turnover and trading volume to refine the flow assessment or using shorter intraday intervals and more advanced models to judge near-term direction.

The document offers a rationale and implementation suggestions, but no backtest, performance figures, or precise definitions for the flow measures or histogram contraction. It warns that flows can reflect sentiment or policy effects, and that a large market value does not guarantee active trading. Short-interval signals can also be noisy; the suggested model additions are proposals rather than demonstrated improvements.

Key ideas

• The screen ranks stocks from highest to lowest by capital inflow measures such as northbound flows or margin financing.
• It excludes stocks whose circulating market value is not above 10 billion yuan.
• A shortening 15-minute MACD histogram is used as a possible signal of a short-term upward turn.
• Turnover and volume are suggested as additional checks on buying strength.
• The document provides no performance evidence, and both flow measures and short-term trend signals can be unreliable.

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