Chinese Stock Screening with Moving Average Convergence and Trend

Summary

This stock screen selects shares based on the convergence of multiple moving averages, a minimum scale requirement, and an upward trend in the 30-day average. The article's proposed final version tightens the conditions to at least ten converging averages, a scale above its revised threshold, and a rising 60-day average. The source does not define how it measures convergence or the scale field.

The post presents convergence as a sign of stability and potential support, while the rising average is treated as evidence of favorable recent direction. It suggests changing the number of averages, scale threshold, and moving-average period to suit market conditions. These rationales are assertions rather than demonstrated results: no backtest or performance evidence is included, and the code example is truncated. The article also notes that rising prices and the scale filter may entail risk, so the screen alone does not establish a reliable entry or risk-management plan.

Key ideas

• The screen combines converging moving averages, a minimum scale filter, and an upward trend filter.
• The proposed final criteria use at least ten converging averages and a rising 60-day average.
• The post suggests adjusting the convergence count, scale threshold, and average period.
• The document provides no performance evidence and does not define the convergence calculation.

Tags

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