Screening Stocks with Positive MACD, Bid-Side Strength, and Prior Limit-Ups

Summary

This Chinese stock screen combines three signals: MACD above zero, first-level bid volume greater than first-level ask volume, and at least two limit-up sessions during the prior 500 days. The combination is intended to capture positive technical momentum, current order-book buying pressure, and a history of sharp upward price moves. The accompanying example also checks that the best bid price is below the best ask and excludes special-treatment stocks.

The article cautions that the screen may work poorly for new or thinly traded stocks, where a small number of participants can produce outsized moves. It also notes that the factors are limited and may yield a broad candidate set. The proposed improvements are to add technical and financial filters and consider sector conditions. No backtest or returns are reported, and the example's historical count is described in a way that may not reliably represent limit-up days, so the stated rules need careful data validation.

Key ideas

• The screen requires MACD to be above zero and best bid volume to exceed best ask volume.
• It also requires at least two limit-up days in the preceding 500 days.
• The article identifies thin trading and new listings as settings where sentiment signals may be unreliable.
• Additional technical, financial, and sector filters are proposed to refine the candidate set.
• No performance results are provided, and the example's historical limit-up count needs validation.

Tags

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