Screening Shenzhen Main Board Stocks with MACD, Moving Averages, and Valuation

Summary

This stock selection example combines a positive MACD reading and rising, diverging daily moving averages with filters for Shenzhen Main Board companies. It restricts price-to-earnings and price-to-book ratios to stated ranges, then suggests sorting candidates by trading volume. The article includes reference formulas and an outline for calculating MACD and moving averages, but it does not present a backtest, portfolio rules, or evidence of returns.

The selection logic is intended to identify stocks with upward technical conditions while limiting valuation multiples. The author cautions that a narrow set of filters can leave a small universe and that market conditions and policy factors also matter. Additional financial measures, such as profitability and earnings growth, are suggested as possible refinements. The specific thresholds are example criteria rather than validated universal cutoffs, and the stated technical conditions alone do not establish that a candidate is suitable for investment.

Key ideas

• The screen requires MACD to be above zero and daily moving averages to be rising and diverging.
• It filters Shenzhen Main Board stocks by specified price-to-earnings and price-to-book ranges.
• Trading volume is proposed as a ranking criterion for selected stocks.
• The article offers formulas and implementation references but reports no testing or performance evidence.
• The author notes that technical, valuation, market, policy, and business factors require broader assessment.

Tags

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