Stock Screening with MACD, Rising Moving Averages, and Company Traits

Summary

This Chinese stock screening example combines a positive MACD reading with an upward moving average condition, then adds company characteristics suited to an investor’s approach. It describes MACD as a signal of current upward movement and rising averages as a trend filter. Suggested company traits include growth, value, or technology orientation, with valuation and profitability measures such as price-to-earnings, price-to-book, and return on equity offered as possible refinements.

The document gives indicator formulas and sample screening and volume-sorting logic, but it does not report backtest results or performance evidence. Its caveats are that adding too many filters can shrink the stock pool and that selecting on past performance can be risky. It recommends considering broader market conditions, policy, industry data, and risk controls; the company-quality component is left for the user to define.

Key ideas

• The screen looks for MACD above zero and a short moving average condition interpreted as upward movement.
• Company traits can be added to match a growth, value, or technology preference.
• Valuation and profitability measures are suggested as ways to make the company filter more concrete.
• The document supplies example formulas but no performance evaluation.
• Too many filters and reliance on past winners may create risks or overly narrow the candidate pool.

Tags

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