A-Share Screen Combining Moving Average Convergence, Profitability, and Valuation

Summary

This proposed A-share screen combines three technical and company filters: at least five moving averages converging, market capitalization below 10 billion yuan with no reported losses, and the 20-day moving average above the 120-day average. It then adds price-to-earnings below 20 and price-to-book below 1. The article presents convergence as a sign of limited price movement and the short-versus-long average condition as evidence of stronger recent prices. These interpretations are the article’s rationale, not validated findings.

The post identifies risks from favoring a short-term upswing even when the longer trend may be weaker, and from relying on a narrow set of financial conditions. It suggests using more moving-average combinations and considering profitability measures. It provides no backtest, performance data, definitions for how many averages count as converged, or precise data methodology; its code sample also appears inconsistent and should not be treated as a verified implementation.

Key ideas

• The screen requires at least five moving averages to converge.
• It selects companies with market capitalization below 10 billion yuan and no losses.
• It requires the 20-day moving average to exceed the 120-day moving average.
• The final stated filters add a price-to-earnings ratio below 20 and price-to-book below 1.
• The article warns that a stronger short-term trend may coexist with a weaker long-term trend.

Tags

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