A Bollinger and Moving Average Screen for Chinese Equities
Summary
This Chinese equity screening proposal combines above-normal daily range, a close between the middle and upper Bollinger bands, and an upward 30-day moving average. It presents these conditions as a way to find active stocks whose medium-term trend is rising while price remains below the upper band. The article also suggests considering company finances and market conditions, and limiting the proportion invested in any one stock.
The document offers formula and Python examples, but they do not fully implement the stated rules consistently: for example, the moving-average formula compares a value with itself plus one, and the Python range condition differs from the described comparison. No backtest results or performance evidence are supplied. The proposed screen also omits fundamentals, volume, market themes, and other context, while technical indicators may lag and a fixed set of conditions may not adapt well to changing markets. Treat it as a screening concept requiring correction and validation, not a tested strategy.
Key ideas
- The screen combines an elevated daily price range with a close between the middle and upper Bollinger bands.
- It seeks stocks with a rising 30-day average as a trend filter.
- The article recommends considering financial and market context and limiting single-stock exposure.
- Its example formulas contain inconsistencies, and the document provides no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.