Stock Screening with MACD, Rising Moving Averages, and Institutional Flow

Summary

This post proposes a Chinese stock screen requiring MACD’s DIF line to be above zero, a short moving average to be rising, and an institutional-flow indicator to be positive. It presents MACD and moving averages as measures of price trend and momentum, while the flow measure is intended to capture institutional activity. Formula references and a Python example illustrate how such conditions might be calculated and combined.

No backtest or performance evidence is supplied, and the post cautions that institutional-flow data may be delayed, technical indicators depend on parameter choices, and flow alone omits other relevant factors. The example code’s conditions do not fully match its verbal description: it tests DIF rather than the MACD histogram, and checks a five-day average’s direction rather than a clearly defined moving-average spread. Treat the post as a rough screening concept and verify data definitions and signal timing before evaluating it.

Key ideas

• The proposed screen combines positive MACD DIF, a rising five-day moving average, and positive institutional flow.
• The indicators represent price trend and an estimate of institutional buying pressure.
• The post provides example formulas but no evidence from a backtest.
• Flow data can lag, and indicator parameters and definitions need careful specification.

Tags

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