Screening Stocks for Weekly Momentum, Sharp Pullbacks, and Fundamentals

Summary

This article proposes a Chinese equity screen combining price movement and fundamental filters. Its initial conditions look for stocks with intraday amplitude above one, a positive weekly MACD bar, and a daily low roughly 4% to 5% below the prior low. The suggested refinement widens that pullback band to 3%–6%, then adds a price-to-earnings ratio below 20 and year-over-year net profit growth above 20%. It also provides example implementations in indicator-formula and Python styles.

The rationale is to find volatile stocks with positive weekly momentum experiencing a sharp daily pullback, while using valuation and earnings growth to narrow candidates. The article cautions that a daily decline alone does not establish investment value and that technical signals can be manipulated or misleading. It offers no backtest results or evidence that the combined filters produce returns; data definitions and implementation details may also vary across platforms.

Key ideas

• The screen combines high amplitude, positive weekly MACD, and a sharp daily pullback.
• The proposed refinement adds valuation and earnings growth requirements.
• The author cautions that price movement alone cannot establish a stock's investment value.
• The document gives example code but does not report backtest results.

Tags

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