A Stock Screen Using Moving-Average Alignment and Company Quality

Summary

This Chinese-equity screening proposal combines alignment among at least five moving averages with a condition that the 20-day average exceeds the 120-day average. It also calls for considering company characteristics, including industry context, profitability, and growth. The author interprets clustered averages as relatively consistent price trends and the shorter average above the longer one as evidence of stronger near-term direction within a longer trend. Suggested refinements include valuation measures and additional technical indicators.

The document does not define how close averages must be to count as overlapping, nor does it provide a complete implementation or performance results. Its code example is incomplete, and the proposed company-quality conditions are qualitative rather than operationally specified. The post acknowledges that policy changes and market sentiment can affect prices beyond the included signals. As presented, this is a screening idea that needs precise definitions, data checks, and backtesting before it can support investment decisions.

Key ideas

• The proposed screen looks for at least five overlapping moving averages and a 20-day average above the 120-day average.
• The moving-average conditions are intended to identify aligned price trends and stronger short-term direction.
• Company quality, valuation, profitability, and growth are suggested as additional filters.
• The overlap rule is not precisely defined, and the example implementation is incomplete.
• The post provides no performance evidence and notes that policy and sentiment can affect results.

Tags

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