Chinese Stock Screen Using Moving-Average Alignment, Volume, and a Golden Cross

Summary

This Chinese equity screening proposal combines at least five converging moving averages, current trading volume above 10,000 lots, a higher opening price, and a 20-day moving average above the 120-day average. The post interprets these conditions as signs of stability, trading activity, and stronger short-term than long-term price action. It also suggests adding valuation, company-size, technical-indicator, and macroeconomic filters to tailor selections.

The evidence is explanatory rather than empirical: no backtest, performance figures, or comparison with a benchmark is provided. The sample Python fragment does not fully implement the stated screen; its convergence calculation compares only two averages, and its signal logic and later selection condition do not clearly match the described criterion. The post cautions that gaps after a high open and shifts in news or sentiment can lead to reversals. Readers should treat the rules as a screening concept, not as evidence of profitability.

Key ideas

• The screen combines moving-average convergence with a 20-day average above the 120-day average.
• It also requires current volume above 10,000 lots and a higher open.
• The post proposes adding valuation, company-size, technical, and macroeconomic filters.
• It reports no empirical performance evidence, and its code fragment does not fully match the stated rules.
• News and sentiment can contribute to reversals after a high open.

Tags

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