Screening Stocks by Price Range, Control Proxy, and Positive MACD

Summary

This Chinese equity screening note selects stocks with a daily amplitude above a threshold, a prior-day “main force control” condition, and a positive daily MACD. It frames these criteria as combining volatility, inferred trading control, and improving technical momentum. The accompanying formula maps the control condition to price relative to a five-day moving average, while the sample Python code also filters for positive price-to-earnings ratios and sorts by circulating market value.

No performance data or backtest is presented. The document warns that MACD can be affected by price gaps and that the screen ignores company fundamentals. It suggests adding indicators such as KDJ or RSI and valuation or size filters, while noting that implementation can be adjusted to market conditions. The code is illustrative, and the note does not establish that its proxy for “main force control” reliably measures institutional activity or that the screen has durable predictive value.

Key ideas

• The screen combines daily price amplitude, a control proxy based on price versus its five-day average, and positive daily MACD.
• The author presents the combination as a way to find volatile stocks with improving technical conditions.
• The sample code adds a positive earnings filter and sorts by circulating market value.
• The note identifies price gaps and the absence of fundamental analysis as limitations.
• No backtest or performance evidence is provided.

Tags

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