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Chinese Stock Screening with Moving Average Convergence and Limit-Up History

Article SuperMind

Summary

This proposed Chinese equity screen combines three conditions: at least five moving averages converging, a rounded-bottom price shape, and at least two limit-up sessions within the past 500 days. The accompanying explanation interprets converging averages as trend alignment, the rounded shape as a possible upward turn, and past limit-ups as evidence of strong price moves. The post frames the combination as a way to find stocks with potential upward momentum.

The document provides no backtest statistics or measured performance evidence. It warns that the rules emphasize short-term behavior and may overlook longer-term trends; an unclear chart pattern or failure to repeat strong moves could undermine the screen. It suggests testing alternative chart patterns and adding moving average, valuation, or market-cap filters. The supplied code excerpt is incomplete and its logic does not clearly implement the described conditions, so the written screening rules are more interpretable than the code example.

Key ideas

  • The screen selects stocks with at least five converging moving averages and a rounded-bottom pattern.
  • It also requires at least two limit-up sessions within the preceding 500 days.
  • The post treats these conditions as signs of aligned trends and past price strength, but supplies no performance evidence.
  • The rules may overemphasize short-term price action and overlook longer-term trends or company quality.
  • The author suggests testing alternative patterns and adding valuation or market-cap filters.

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