Screening Main Board Stocks with MACD, Moving Averages, and Daily Gains

Summary

This Chinese stock-screening example selects main board shares when MACD is above zero, the short and longer moving averages show an upward separation, and the stock’s daily gain exceeds 1%. Its example implementation uses 12- and 26-period exponential averages to form MACD, a 9-period signal average, and 5- and 10-period simple moving averages. The stated aim is to combine trend indicators with a positive daily move while limiting the universe to main board listings.

The document supplies indicator formulas and sample Python screening logic, but no backtest or evidence that the filters predict future returns. It warns that the approach omits valuation and balance-sheet considerations, relies heavily on technical measures, and may select stocks exposed to sharp short-term swings. The code is illustrative and refers to data fields and sources whose alignment and availability would need checking before use. The screen is a candidate-selection rule, not a complete trading system; the author recommends adding fundamental analysis and risk controls.

Key ideas

• The screen requires MACD to be positive and short-term moving averages to separate upward.
• It also requires a daily gain above 1% and restricts candidates to main board stocks.
• The example calculates MACD from exponential averages and compares 5- and 10-day simple averages.
• The document warns that the screen omits fundamental measures and may select volatile stocks.
• It provides illustrative formulas and code but no performance test.

Tags

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