A-Share Screen for Moving-Average Confluence and Trend Alignment
Summary
This proposed A-share screen looks for stocks priced below 12 yuan, with at least five moving averages converging and the twenty-day moving average above the 120-day average. The document interprets confluence among several averages as possible agreement between short- and long-term price trends, while the relative position of the twenty- and 120-day averages is intended to indicate a more favorable intermediate trend.
The text acknowledges that technical signals do not guarantee future performance and that a low nominal share price excludes higher-priced stocks, including some that may have growth potential. It suggests adding indicators such as MACD or RSI and using a quantitative trading system, but offers no empirical tests. The Python example is truncated before the strategy is implemented, and its final screening description includes extra suggestions rather than specifying additional executable conditions. Treat this as an outline, not a tested rule set.
Key ideas
- The screen requires at least five moving averages to converge.\nIt filters for share prices below 12 yuan and a twenty-day average above the 120-day average.\nThe rationale associates average confluence with agreement across time horizons.\nThe low-price filter may exclude stocks with higher nominal prices.\nThe code is incomplete and no backtest evidence is presented.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.