A-Share Screening with Moving Average Clusters, Positive P/E, and Trend
Summary
This A-share stock selection method combines three filters: at least five moving averages must converge, the stock must have a positive price-to-earnings ratio, and its 20-day moving average must be above its 120-day moving average. The convergence condition is intended to identify stocks whose short- and long-term averages are aligned or compressed, while the positive P/E filter excludes companies with negative earnings under the measure used. The 20-day versus 120-day comparison adds a trend condition favoring stronger recent prices.
The source frames the approach as combining technical and fundamental analysis and outlines broad risks: market losses, limitations or misinterpretation of technical signals, and inaccurate company financial information. It suggests testing other average combinations and adding or changing technical and fundamental measures. No backtest, evidence of profitability, timing rules, or portfolio controls are provided, and the meaning of average convergence is not formally defined.
Key ideas
- The screen requires at least five moving averages to converge.\nIt excludes stocks with a non-positive P/E ratio.\nIt favors stocks whose 20-day average is above their 120-day average.\nThe source describes market, technical-analysis, and financial-data risks but supplies no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.