A-Share Screen for Converging Moving Averages and a Rising Trend

Summary

This note describes an A-share stock screen that looks for at least five overlapping moving averages, excludes Beijing-listed shares, and requires the 20-day moving average to be above the 120-day moving average. The overlap condition is presented as a sign of price stability, while the faster average above the slower one is treated as a positive trend filter. The post also provides a brief code example of applying these conditions.

It identifies market volatility, the limits of technical analysis, and concentration in particular stocks or industries as risks. Suggested adjustments include changing the moving-average periods and adding indicators such as MACD, RSI, turnover, or trading volume. No backtest, performance figures, or supporting empirical evidence are supplied, and the example code does not establish how its moving-average overlap condition is calculated. The screen is therefore a rough selection concept rather than a validated trading system.

Key ideas

• The screen requires at least five overlapping moving averages and excludes Beijing-listed shares.
• It also requires the 20-day moving average to exceed the 120-day moving average.
• The author interprets overlapping averages as stability and the average crossover condition as a positive trend signal.
• The post warns about market, technical-analysis, and concentration risks.
• It provides no performance test or empirical evidence for the screening rules.

Tags

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