Stock Screening with Price Amplitude, Weekly MACD, and Moving Averages

Summary

This Chinese equity screening approach combines three technical conditions: daily price amplitude above 1, a positive weekly histogram signal, and the 20-day moving average above the 120-day moving average. The stated rationale is that larger amplitude indicates volatility, a positive weekly signal reflects recent upward movement, and the moving-average relationship indicates a longer-term rising trend. The example formula also ranks candidates by recent trading volume and selects the top-ranked qualifying stock.

The article flags the absence of fundamental quality filters and the possibility that relatively short indicator choices may misread noisy price action. It suggests adding company fundamentals and other technical indicators, and adjusting moving-average periods to market conditions. Its examples are not fully aligned: the formula describes a weekly MACD condition, while the Python example checks daily MACD values; the amplitude thresholds are also represented differently. No backtest results or performance statistics are supplied, and the code is presented as a reference requiring adaptation.

Key ideas

• The screen combines price amplitude, a positive weekly histogram condition, and a rising 20-day versus 120-day moving-average relationship.
• The formula ranks qualifying stocks by recent volume activity.
• The stated risks include weak fundamentals and false signals from short indicator periods.
• The formula and Python example use differing MACD timing and amplitude representations.
• The article offers no performance results and recommends adapting and validating the implementation.

Tags

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