Stock Screening with Weekly MACD and Institutional Buying

Summary

This note describes a Chinese equity screen combining daily price amplitude, a positive weekly MACD reading, and positive institutional net inflows. Its proposed logic treats amplitude as a way to exclude quieter stocks, the weekly indicator as a trend filter, and institutional buying as a possible sign of support or rebound potential. It also gives example implementations in two trading environments, though those examples differ in how they calculate the conditions, so they should not be assumed equivalent.

The document cautions that the screen relies heavily on market sentiment and institutional flow data, whose definitions and accuracy may be uncertain. It recommends adding company fundamentals such as valuation and profitability measures, and considering price volatility and trend together. No backtest, performance figures, detailed data definitions, or transaction-cost analysis are provided, so the proposed signals are an idea to investigate rather than evidence of a profitable strategy.

Key ideas

• The screen combines a minimum daily amplitude condition with positive weekly MACD and institutional net inflows.
• The author presents institutional buying as a possible indicator of price support or a rebound.
• The two sample implementations use different data and condition calculations, so their outputs may not match.
• The note identifies weak fundamental analysis and uncertain institutional-flow data as important limitations.
• It provides no performance test or trading-cost analysis.

Tags

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