A Chinese Stock Screen Combining Relative Volume and the 10-Day Average

Summary

This Chinese-language post outlines an equity screen for stocks listed in 2021. It ranks candidates by volume ratio, selecting the top 100, and seeks stocks whose closing price is near the 10-day moving average. The stated rationale is that relative volume may indicate market attention, while proximity to the short-term average can help identify stocks with an unclear near-term direction. The post also cautions that volume reflects sentiment and trading behavior, and that a short moving average cannot describe a stock's long-term trend.

The proposed refinements include evaluating valuation with price-to-earnings and price-to-book measures, favoring stocks with upward long-term trends, and considering industry and corporate governance. These are recommendations rather than a fully specified, tested strategy: “near” the moving average is not quantified, and no returns, benchmark comparison, transaction costs, or backtest results are supplied. The listing-year filter may also select younger companies with limited history or unstable fundamentals, a limitation the post itself acknowledges.

Key ideas

• The screen ranks stocks by volume ratio and selects up to the top 100.
• It looks for closing prices near the 10-day moving average, though the required proximity is not defined.
• The post treats relative volume as a measure of attention, while warning that it is influenced by market sentiment and trading behavior.
• It suggests adding valuation, long-term trend, industry, and governance checks.
• No backtest, return evidence, or implementation details are provided for the proposed screen.

Tags

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