A Momentum Screen Using Limit-Ups, a Weekly Moving-Average Cross, and Buying Pressure

Summary

This Chinese equity screen combines a buying-pressure threshold above 5%, a weekly K-line crossing above the 30-week line, and more than two limit-up days during the previous ten days. The article interprets these conditions as signs of investor demand, a rising longer-term trend, and strong recent market attention. It then proposes adding healthy company finances, favorable industry prospects, a MACD bullish crossover, and an upward-opening Bollinger band, though these additions are not part of the initial three-condition rule.

The note includes sample code, but it does not provide a backtest or demonstrate that the conditions predict gains. The code's calculation for ten-day limit-up frequency instead counts positive-return observations across the retrieved data, and the buying-pressure ratio is based on fields whose meaning and availability are not explained. The article acknowledges that the screen focuses on price action and attention while omitting company and industry fundamentals, and warns that qualifying stocks may still perform poorly.

Key ideas

• The headline screen combines buying pressure above 5%, a weekly cross above the 30-week line, and more than two recent limit-up days.
• The article interprets these conditions as demand, trend, and market-attention signals.
• Fundamental measures and additional technical indicators are suggested as possible extensions.
• The sample code's limit-up count does not match the described ten-day limit-up condition.
• No backtest evidence is provided, and the article warns that selected stocks may still underperform.

Tags

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