Screening Shenzhen Stocks with MACD and Valuation Filters

Summary

This post outlines a daily pre-market screen for Shenzhen main-board shares. It selects stocks with MACD above zero and positive earnings, then applies valuation bands: price-to-earnings from zero to 29.01 and price-to-book from zero to 3.11. The stated rationale is that a positive MACD reading may indicate an upward trend, while the valuation filters exclude some securities with unusually high multiples. The post also mentions sorting candidates by trading activity, but does not define a complete ranking process.

The author cautions that meeting valuation thresholds does not establish strong business quality and that other fundamentals may be relevant. Suggested additions include momentum indicators such as RSI or KDJ and measures such as revenue growth and gross margin. No backtest results, transaction assumptions, or evidence of profitability are supplied, so the screen should be read as a rule proposal rather than a validated strategy. Its example code and written criteria are not fully aligned, which leaves implementation details uncertain.

Key ideas

• The screen combines positive MACD with positive earnings and bounded price-to-earnings and price-to-book ratios.
• The proposed scan runs before each trading day’s open.
• The post suggests sorting eligible stocks by trading activity but does not specify a full ranking method.
• Valuation thresholds alone may overlook business quality and other fundamentals.
• The post supplies no performance evidence to validate the screening rules.

Tags

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