Screening Stocks with Positive MACD and Positive Price-to-Earnings Ratios

Summary

This Chinese equity screening method evaluates stocks after each trading day’s close. It selects stocks whose MACD is above zero, whose price-to-earnings ratio is positive, and whose MACD is rising relative to the prior observation. The document presents the positive MACD readings as signs of an established upward trend and uses positive P/E as a basic filter on valuation data.

It includes example indicator definitions, a screening condition, and a Python-style illustration that ranks selected stocks by market capitalization. No backtest results or other empirical evidence are reported. The author cautions that technical indicators can fail during abrupt market changes and that the screen omits broader fundamentals, liquidity, and risk controls. The suggested improvements—additional indicators, fundamental data, parameter tuning, and risk management—are proposals rather than validated enhancements.

Key ideas

• The screen is run after the market close and requires MACD above zero and rising.
• It also requires a positive P/E ratio.
• The document interprets positive and rising MACD as evidence of an upward trend.
• Its sample ranks qualifying stocks by market capitalization.
• No performance evidence is given, and the screen omits liquidity and explicit risk controls.

Tags

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