Stock Screening with Turnover, Float Size, and Positive MACD

Summary

This note presents a Chinese equity screening rule that combines daily turnover, circulating share or market-cap size, and MACD direction. The stated criteria constrain turnover to a bounded range, limit float size, and require a positive daily MACD condition; the final explanation also describes the MACD line as being above its signal line. Indicator formula and Python examples are included as implementation references. The screen is framed as a way to focus on actively traded stocks with a favorable trend signal.

No backtest or returns are provided, so the proposed trend and risk-control benefits are not established by evidence here. The note acknowledges that the rule excludes company fundamentals and that MACD alone can give unreliable selections. It suggests combining volume or other technical indicators with valuation or profitability measures, considering a longer selection horizon, and adjusting MACD parameters. The criteria are not fully consistent across the text, particularly around turnover and the MACD condition, so an implementation would need a precise specification.

Key ideas

• The screen combines a turnover range, a float-size bound, and a daily MACD trend condition.
• The document provides formula and Python examples but reports no performance evaluation.
• The strategy rationale is to find actively traded stocks with positive trend signals.
• The note identifies missing fundamentals and reliance on a single indicator as limitations.
• Some stated thresholds and descriptions differ, so the rule requires clarification before implementation.

Tags

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