Stock Screening with Weekly MACD, Daily Range, and Institutional Flow

Summary

The article describes a Chinese stock screening rule combining a daily range filter, a weekly MACD condition above zero, and positive institutional flow measures. Its stated rationale is to pair price movement and trend information with indicators intended to represent the direction of market funds. It provides indicator expressions and a Python example that retrieves stock data and attempts to apply screening conditions.

The article offers no backtest results or evidence that the screen predicts returns. It warns that the rule omits company fundamentals and focuses on short-term technical and sentiment signals, which may mislead in volatile markets. It suggests adding fundamental, policy, and industry factors, and improving risk controls. The code example's calculations do not fully match the stated MACD rule, so implementation details warrant careful validation before use.

Key ideas

• The proposed screen combines a daily price range threshold with a weekly MACD condition and positive institutional flow readings.
• The author treats price indicators as signals of market direction and flow indicators as proxies for capital movement.
• The article provides formulas and a data-driven code example but reports no performance evaluation.
• The approach omits fundamentals and may be unreliable during periods of sharp market fluctuation.
• The code example should be checked because its calculations differ from the stated screening conditions.

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