A-Share Screen for Moving-Average Clusters and an Uptrend

Summary

This proposed A-share screen looks for stocks with at least five overlapping moving averages, a 20-day average above the 120-day average, and a 9:25 gain below 6%. The note interprets moving-average overlap as a period of relative price stability and the faster average exceeding the slower one as a possible upward trend. The opening-gain condition is intended to limit stocks that have already advanced sharply before regular trading. It suggests adding more moving averages or valuation measures to refine the selection.

The article describes the screening idea but supplies no formula implementation, backtest, or evidence that overlapping averages predict stability or future returns. Its risk discussion acknowledges that the rule can exclude stocks with divergent averages or stronger opening gains, including some that may be attractive. The meaning and tolerance of “overlap” are not specified, making the key condition difficult to reproduce consistently. The proposed screen should therefore be treated as an informal hypothesis requiring precise definitions and testing.

Key ideas

• The screen requires at least five moving averages to overlap.
• It also requires the 20-day average to exceed the 120-day average and the 9:25 gain to remain below 6%.
• The article interprets average overlap as possible short-term stability and the average relationship as a possible uptrend.
• It provides no operational definition, implementation, or test results for the screen.

Tags

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