Chinese Stock Screen Using Moving-Average Convergence and an Upward 30-Day Average

Summary

This proposed stock screen combines three filters: a rising 30-day moving average, convergence among at least five moving averages, and a non-empty name for an outstanding convertible bond. The example moving-average periods are 5, 10, 20, 60, and 120 days. The article frames convergence as alignment across time horizons and the rising average as evidence of a recent upward trend. Its explanation of the convertible-bond field is internally inconsistent: it says a non-empty name is required, then describes selecting stocks where that name is empty.

The document offers no backtest or return evidence. It notes that the filters may exclude promising stocks that do not meet them and that excluded firms could still have long-term value. It suggests adding more moving-average periods or valuation measures, but gives no tested results. The included code is only a sketch with unimplemented functions, so the screen is not fully specified for reproducible use.

Key ideas

• The proposed screen requires at least five moving averages to converge and the 30-day average to rise.
• The example moving-average periods are 5, 10, 20, 60, and 120 days.
• The convertible-bond-name condition is contradictory: the document alternates between requiring a name and requiring it to be blank.
• No backtest or return evidence is supplied, and the code example leaves key functions unfinished.

Tags

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