Stock Screening with Weekly MACD, Recent MACD, and Daily Range

Summary

This note describes a Chinese equity screening rule combining daily price range with MACD conditions. It seeks stocks whose weekly MACD is above zero while MACD was below zero two days earlier, alongside a range threshold above 1%. The article also gives indicator formula and Python examples, though the code’s daily calculations do not clearly implement the stated weekly MACD condition. It offers no backtest or performance evidence.

The rationale is that MACD can indicate trend and shifts in buying or selling pressure, while the range condition adds a price-movement filter. The author warns that the screen focuses on technical signals and may miss fundamental risks or exclude otherwise attractive stocks. Suggested extensions include adjusting the recent-MACD filter and adding other technical or valuation measures. The described rules are screening criteria, not a complete entry, exit, or risk-management system.

Key ideas

• The screen combines a range threshold above 1% with weekly MACD above zero and MACD below zero two days earlier.
• The stated rationale is to combine a broader trend condition with a recent momentum-related filter.
• The provided Python example appears to use daily data and does not clearly reproduce the weekly MACD requirement.
• The note gives no backtest results and identifies limited fundamental analysis as a key weakness.
• Possible extensions include other technical indicators and company valuation measures.

Tags

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