A-Share Screen for Tight Moving Averages and Moderate Short-Term Gains

Summary

This A-share screening idea combines three conditions: at least five moving averages converge, the stock’s ten-day gain is positive but below a stated upper bound, and its indicated pre-open gain is limited. The convergence is presented as a sign of price stability, while the recent positive return seeks stocks with some upward momentum without an extreme advance. The pre-open condition is intended to avoid stocks already making a large jump.

The document discusses possible weaknesses, including that tightly grouped averages may identify stocks with little energy, recent winners may be vulnerable to pullbacks, and a modest pre-open move does not establish that a stock is attractive. It proposes tighter gain and pre-open thresholds and adding more moving averages, but gives no empirical performance evidence. Its sample code does not clearly implement the stated timing and screening logic, so the proposed criteria should be treated as an unvalidated selection heuristic rather than a tested strategy.

Key ideas

• The screen looks for convergence among at least five moving averages.
• It selects stocks with positive but capped returns over the prior ten days.
• A limited pre-open gain is used to avoid stocks with large opening moves.
• The document identifies weak breakouts and pullbacks as potential risks.
• No backtest results are supplied, and the sample code may not match the described rules.

Tags

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