Small-Cap Stock Screening with Volatility and Weekly MACD

Summary

The document describes a Chinese equity screen combining daily price amplitude above 1%, a freely traded share count no greater than 5.5 billion, and weekly MACD above zero. It presents these filters as a way to find relatively volatile small-cap stocks with positive trend momentum. Example indicator logic is provided, along with a ranking step that selects a portion of qualifying stocks by turnover rate.

The author notes that the screen omits company finances and fundamentals, and that broad market conditions can affect its results. Suggested refinements include adding financial health, growth, industry prospects, and value measures, then adjusting the screen as market volatility changes. The document gives no performance data or evidence that the criteria predict returns; its claims about potential are qualitative. The code examples also do not clearly implement weekly MACD in every step, so their details would need review before use.

Key ideas

• The screen combines price amplitude, freely traded share count, and weekly MACD to identify candidate small-cap stocks.
• It treats positive weekly MACD as a signal of upward momentum.
• The proposed filters do not account for company fundamentals or broad market conditions.
• The author recommends adding financial and industry measures and revisiting the rules as conditions change.

Tags

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