Short-Term Rebound Screening with MACD, Buying Activity, and Valuation Filters

Summary

The document proposes a Chinese stock screen that combines three short-term signals: buying activity above 5%, a previous-day 9:15 matched price at the limit-down level, and a shrinking green histogram on the 15-minute MACD. It interprets the buying measure as potential capital inflow, the limit-down condition as weak sentiment, and the MACD change as a possible improvement in near-term momentum. Together, these conditions aim to find stocks that may rebound after sharp weakness.

The proposed refinement adds valuation filters requiring price-to-earnings below 20 and price-to-book below 2. The article includes illustrative Python logic, but its sample calculations and condition checks are not accompanied by validated market data, backtest results, or precise operational definitions. It cautions that the screen can be vulnerable to sentiment and short-term volatility, and omits longer-term trend and company fundamentals beyond the added valuation ratios. The screen is therefore a hypothesis for further testing, not evidence of a reliable strategy.

Key ideas

• The screen combines buying activity above 5% with a prior-day limit-down indication and a shortening 15-minute MACD histogram.
• The signals are intended to identify possible short-term rebounds after severe price weakness.
• The proposed version adds price-to-earnings and price-to-book thresholds as valuation filters.
• The article presents no backtest evidence and notes that short-term sentiment and volatility can produce poor selections.

Tags

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