Screening Low-Priced Shares with Positive MACD and Rising Moving Averages

Summary

This note outlines a daily Chinese stock screen run before 10 a.m. It looks for shares priced below 12, a MACD condition above zero, and a rising alignment among the 5-, 10-, 20-, 30-, and 60-day moving averages. The intended signal combines a price ceiling with indicators commonly used to identify positive short- and medium-term momentum. Formula and Python examples are included to illustrate the conditions.

The document gives no historical test results, comparison, or evidence that the screen produces an advantage. It cautions that the rule may exclude fundamentally attractive companies, can perform poorly when market conditions change, and may be disrupted by events around the screening time. It recommends considering fundamentals and risk controls such as exit levels. The implementation examples warrant validation: a MACD value crossing zero differs from simply remaining above zero, and the stated moving-average alignment does not by itself establish that every average is rising over time. Results may therefore depend on the precise definitions and data used.

Key ideas

• The screen combines a price below 12 with a MACD condition above zero.
• It requires moving averages from 5 through 60 days to be ordered from highest to lowest.
• The stated routine runs before 10 a.m. each trading day.
• The note supplies formula and Python examples but no backtest or performance evidence.
• The screen may miss fundamentally strong shares and can be vulnerable to changing market conditions.

Tags

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