A-Share Screen Using Moving-Average Convergence and Opening Gains

Summary

This post describes an A-share screening rule that requires at least five moving averages to converge, a stock concentration measure below a stated threshold, and a gain at 9:25 below a stated ceiling. It proposes that clustered averages may indicate a steadier price path and uses the opening gain filter to exclude stocks with larger early advances. The post’s explanation of “concentration” is vague and does not clearly match its stated threshold.

The article suggests that excessive moving-average convergence can leave a stock without strong movement, and that its concentration condition may carry price risk. It recommends testing additional moving averages and technical indicators, as well as valuation measures such as price-to-earnings and price-to-book ratios. There is no backtest, performance evidence, or complete implementation: the included Python example is truncated and does not establish how the criteria are calculated. The screen is therefore a preliminary selection idea rather than a validated strategy.

Key ideas

• The proposed screen combines convergence among at least five moving averages with a low opening gain and a concentration filter.
• The post names five-, ten-, twenty-, thirty-, and sixty-day averages as possible inputs.
• It warns that tightly converged averages may signal limited price movement.
• It proposes adding technical indicators and valuation measures, but reports no performance test.

Tags

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