A Stock Screen Combining Amplitude, Control, and Moving-Average Alignment

Summary

The document proposes screening Chinese equities for price amplitude above a threshold, a high daily control measure, and at least five overlapping or aligned moving averages. It presents this as a technical filter intended to narrow the universe, then suggests adding MACD or RSI conditions. It also cautions that technical signals can misclassify stocks, omit fundamental analysis, and create entry, exit, and position-risk challenges.

The proposed final screen adds a positive MACD reading or an RSI below a threshold. However, the sample formula and code do not clearly implement all of the described conditions: the moving-average expression checks closes against a five-period average, while the snippets’ amplitude calculation and thresholds may not match the prose. The document supplies no performance evidence or validation procedure, so the screen should be treated as an unverified idea rather than an established strategy.

Key ideas

• The proposed screen combines price amplitude, a daily control measure, and moving-average conditions.
• The suggested refinement adds a positive MACD reading or an RSI below a threshold.
• The document identifies risks from relying only on technical signals and omitting company fundamentals.
• The example formulas do not clearly match every condition described in the prose.
• No backtest results or validation evidence are provided.

Tags

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