Chinese Equities Screen Using Moving-Average Confluence and Company Filters

Summary

This document describes a Chinese stock-selection screen combining at least five overlapping moving averages with market capitalization and company profitability filters. It also presents additional proposed conditions: a price-to-earnings ratio below 30, a price-to-book ratio above 1.5, and an upward trend line. The moving-average cluster is treated as a sign of stable price action and potentially defined support or resistance, while the size and earnings filters aim to focus on larger, profitable firms.

The explanation is qualitative and provides no backtest, performance figures, precise definition of “overlap,” or rules for measuring an upward trend line. Its stated risks include muted price movement and losses from continued declines. The sample code checks exact equality across five moving averages, which is a narrow interpretation of overlap and may rarely occur. The document therefore offers a screening idea rather than evidence of a validated trading strategy.

Key ideas

• The screen combines five overlapping moving averages with market capitalization and profitability conditions.
• Additional proposed filters include valuation ratios and an upward trend line.
• The document treats moving-average clustering as a possible sign of stable price action.
• It provides no performance evidence and does not precisely define moving-average overlap.

Tags

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