Chinese Stock Screen for Five-Day Highs Above the Five-Day Average

Summary

This Chinese stock-selection example combines an amplitude filter, exclusion of special-treatment stocks, a five-session price-high condition, and a requirement that the closing price be above its five-day moving average. The article frames it as a pre-10 a.m. selection strategy and describes the moving average as a way to reflect recent price direction. It includes formula and Python examples, though their amplitude calculations use different interpretations, so the precise filter should be checked before implementation.

The article offers no performance results or backtest evidence. It warns that moving averages lag short-term price changes and that trading above an average does not establish that a stock is fairly valued. It suggests combining technical measures such as RSI or MACD with financial and industry information, but does not specify rules for doing so. The screen is therefore a basic selection idea, not a complete trading system or evidence of profitability.

Key ideas

• The screen excludes stocks marked as special-treatment shares.
• It selects stocks meeting an amplitude threshold and a five-session price-high condition.
• The closing price must be above its five-day moving average.
• The article notes that moving averages can lag rapid price changes.
• A price above a moving average does not determine whether a stock is fairly valued.

Tags

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