Screening Shenzhen Stocks with MACD, Daily Gains, and Moving Averages

Summary

This stock screen combines three technical conditions with a market restriction: MACD must be above its zero line, the share price must be up by more than 1% for the day, the stock must belong to the Shenzhen main board, and its 20-day moving average must exceed its 120-day average. The article gives both a screening formula and a Python example intended to select candidates, rank them, and manage positions by removing stocks that no longer qualify and buying new selections.

The accompanying discussion flags dependence on technical indicators and the omission of company fundamentals and industry conditions. It suggests adding those inputs, reviewing rules as market conditions change, and considering sector rotation. No backtest results or performance evidence are presented. The examples also contain implementation ambiguities, including differing definitions of the daily price change and potentially inconsistent moving-average data retrieval, so the stated rules would need careful verification before use.

Key ideas

• The screen looks for positive MACD, a daily gain above 1%, Shenzhen main-board membership, and a rising relationship between the 20-day and 120-day averages.
• The example ranks qualifying stocks and describes selling positions that leave the selection and buying newly selected names.
• The article identifies missing fundamental and industry analysis as limitations of the technical screen.
• No performance evidence is provided, and parts of the example code may not implement the stated rules consistently.

Tags

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