Chinese Stock Screen Using Price Amplitude and a Weekly Moving-Average Crossover

Summary

The document presents a Chinese stock-selection rule combining price amplitude, a specified share price, and a weekly five-period moving average crossing above a ten-period average. It frames the screen as a way to find stocks with moderate volatility and a potentially favorable medium-term trend, and includes sample indicator and Python implementations.

The article gives no backtest results or evidence that these conditions predict returns. It notes that the screen omits fundamentals, valuation, industry conditions, and shorter-term price movements, and suggests adding broader market or company measures. There are inconsistencies in the rule: the opening description and final version give different amplitude ranges, while the implementation describes a particular price and appears to test daily rather than weekly averages. The price condition is also unusually exact. These differences mean the stated rule should be clarified before implementation, and the screen should not be read as a validated strategy.

Key ideas

• The proposed screen combines price amplitude, a fixed price condition, and a moving-average crossover.
• The crossover is described as the weekly five-period average rising above the ten-period average.
• The article provides example formulas and a Python implementation but no performance evaluation.
• It warns that fundamentals, valuation, sector conditions, and short-term moves are omitted.
• The amplitude thresholds and implementation details conflict across sections and need clarification.

Tags

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