Chinese Stock Screen Using Moving Average Convergence and Recent Limit-Ups

Summary

This Chinese-language post proposes a stock selection screen combining three conditions: convergence of the 5-, 10-, 20-, 30-, and 60-day moving averages; at least one limit-up event during the preceding 25 days; and a 10-day gain greater than zero but below 35%. The author interprets moving-average convergence as a potential entry signal, recent limit-ups as evidence of attention or prior price strength, and the bounded return as positive momentum that has not advanced too far.

The post provides sample indicator code and suggests adding longer moving averages, MACD or RSI, and fundamental analysis as possible refinements. It also acknowledges market and company-specific risks and advises risk controls. However, it offers no backtest, benchmark, entry or exit rules beyond the screen, or evidence that the conditions predict returns. The code’s limit-up and return checks do not clearly implement the stated lookback conditions, so the example should not be treated as a verified screening procedure.

Key ideas

• The proposed screen looks for convergence among five moving averages spanning short to medium horizons.
• It also requires a limit-up event in the prior 25 days and a positive 10-day return below 35%.
• The author frames the conditions as a combination of price consolidation, recent strength, and bounded momentum.
• Suggested extensions include additional moving averages, momentum indicators, and fundamental data.
• The post provides no performance evidence, and its sample code may not correctly enforce the stated lookback rules.

Tags

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