Screening Low-Priced Stocks with Positive MACD and P/E

Summary

This post presents a daily pre-open screen for Chinese stocks with MACD above zero, positive trailing earnings multiples, and prices below a stated threshold. It frames the MACD condition as a way to identify an upward trend, the positive P/E as a basic profitability-related filter, and the price cap as a way to select lower-priced shares. The described workflow also sorts the qualifying names by a trading-activity or popularity measure.

The post provides formula and Python examples, but no backtest, return series, or evidence that the combined conditions have predictive value. It explicitly notes that the rules are simple and may not capture a company's actual investment value; lower-priced stocks may have weak liquidity, and market conditions can make their performance uncertain. It suggests adding measures such as market capitalization and earnings quality, then monitoring selected names and adjusting risk exposure. The examples are screening guidance rather than a validated strategy specification.

Key ideas

• The screen combines MACD above zero, positive trailing P/E, and a price ceiling.
• It is intended to run before each trading day and sort qualifying shares by trading activity or popularity.
• The post gives implementation examples but reports no backtest or performance evidence.
• The author flags weak liquidity and uncertain market conditions as risks for lower-priced shares.
• Additional company-quality measures and ongoing risk controls are suggested.

Tags

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