Selecting Chinese Stocks with Intraday MACD Histogram Contraction

Summary

This document describes a Chinese stock screen that combines an intraday price range filter with a 15-minute MACD histogram condition, limited to 2021. The accompanying examples implement the filters in indicator and Python workflows. The intended use is to place matching stocks in a watch or investment pool, rather than to provide a complete entry and exit system.

The explanation treats a daily range above one percent as a sign of elevated volatility and uses a shortening MACD histogram bar as a short-term signal. It also flags important limits: histogram changes may be unreliable in isolation, and the screen omits company fundamentals. Suggested extensions include combining other technical indicators, incorporating fundamental analysis, and adjusting periods and parameters to market conditions. The document supplies no backtest results or evidence that the screen is profitable; its 2021 date restriction also limits how directly the rule applies to other periods.

Key ideas

• The screen requires a daily high-low range greater than one percent.
• It restricts candidates to 2021 and evaluates MACD histogram behavior on a 15-minute interval.
• The selected stocks are added to a candidate pool rather than governed by a complete trading plan.
• A shortening histogram bar is treated as a short-term signal and may be inaccurate on its own.
• The author suggests combining technical indicators with fundamental analysis and tuning parameters.

Tags

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