Chinese Stock Screen Using a Rounded Base and 30-Week Moving Average

Summary

This note describes a Chinese equity screening rule combining amplitude above 1, a rounded price shape, and a weekly close crossing above the 30-week moving average. It presents the shape and moving-average conditions as ways to find gradual price action followed by a possible medium-term breakout. A formula reference expresses the idea through a 50-period price range and moving-average comparisons.

The article gives no performance results or backtest evidence. It warns that the screen omits fundamental factors and uses only weekly data, which may make signals less tailored to an investor’s needs. It suggests combining other technical and fundamental measures and checking additional chart intervals. The discussion is qualitative, and it does not define the rounded pattern precisely or explain how amplitude is calculated, so the rule may be difficult to reproduce consistently.

Key ideas

• The screen combines amplitude above 1 with a rounded price pattern and a weekly close crossing above the 30-week moving average.
• The moving-average condition is intended to identify a possible break above a medium-term trend measure.
• The article does not provide backtest results or establish that the screen predicts subsequent gains.
• It identifies omitted fundamentals and reliance on weekly data as limitations.

Tags

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