Stock Screening with Positive MACD, Positive PE, and a Rising 30-Day Average

Summary

This document describes a Chinese equity screening rule that combines a positive MACD reading, positive price-to-earnings ratio, and an upward-trending 30-day moving average. It interprets the MACD and moving average conditions as signs of upward momentum, while the positive PE condition excludes firms with negative earnings multiples. It also sketches indicator formulas and a filter based on price above the 30-day average.

The post offers no backtest results or performance evidence, so the screen should be treated as an unvalidated idea. It notes that MACD can lag turning points and that a rising short-term average does not establish that a stock is investable. It suggests adding other trend indicators and considering company fundamentals and industry conditions, but does not specify how to combine these inputs or evaluate the resulting strategy.

Key ideas

• The screen selects stocks with MACD above zero, positive PE, and an upward 30-day average.
• The described filter also requires the closing price to be above the 30-day average.
• MACD may lag reversals, and a rising average alone does not establish investment suitability.
• The post suggests adding other indicators and fundamental or industry context, without testing those additions.

Tags

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