Chinese Equity Screening with Moving Average Confluence and Momentum
Summary
The article proposes a Chinese equity screening rule that combines at least five overlapping moving averages, a 20 day average above the 120 day average, and a positive 10 day return below 35%. It interprets these conditions as alignment across time horizons and recent gains that have not exceeded the stated cap. The approach is a technical screen for candidate stocks rather than a complete trading system.
The post acknowledges that selected stocks can still decline and offers no backtest, performance statistics, or evaluation against a benchmark. It suggests adding volume, valuation, and further indicators such as Bollinger Bands, but does not define thresholds for those additions. Its sample Python code is truncated, and the final combined rules include criteria not present in the initial screen, so the implementation and final selection process remain underspecified.
Key ideas
- The proposed screen requires five or more overlapping moving averages.
- It also requires the 20 day moving average to exceed the 120 day moving average.
- Recent 10 day price appreciation must be positive and below 35%.
- The article warns that the screen cannot guarantee future gains and supplies no backtest evidence.
- Suggested additions include volume, valuation, and other technical indicators, without precise rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.