Screening Stocks with Positive MACD, Rising Averages, and Large-Order Inflows

Summary

This Chinese equity screen combines MACD above zero, upward divergence of the day’s moving averages, and net inflow from large orders during the afternoon. The note interprets these conditions as trend strength and buying pressure. Its illustrative formulas include MACD, short moving averages, and a volume-based flow measure compared with its 10-period average. It proposes considering other indicators and market or industry fundamentals when refining the screen.

The material is a rule description with sample formulas, not an empirical study: it provides no backtest results, benchmark, or evidence that afternoon order flow predicts subsequent returns. The stated intraday inflow condition is not clearly represented by the provided flow formula, and the brief code reference includes additional filters that are not fully reconciled with the core description. The author notes that strong flows can accompany sharp volatility and that several simultaneous filters may produce very few candidates. No holding period, execution plan, or risk controls are specified.

Key ideas

• The screen requires MACD above zero, rising or diverging moving averages, and afternoon large-order net inflow.
• The example uses a volume-based flow measure and compares it with a 10-period average.
• The note suggests adding other indicators and market or industry context.
• Large flows may coincide with substantial price volatility, and multiple filters may leave few stocks.
• The document supplies no backtest evidence or detailed execution and risk rules.

Tags

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