Chinese Stock Screening with Moving Average Convergence, Limit-Ups, and Revenue Growth

Summary

This post describes a Chinese stock screen combining convergence among five moving averages, repeated limit-up sessions, and revenue growth. The moving averages span 5, 10, 20, 30, and 60 days; the fundamental filter compares 2021 revenue with 2018 revenue, requiring a ratio above 1.1. The author interprets converging averages as a period of price stability that could precede a rise, and recent limit-ups as a sign of short-term strength. The screen is presented as a selection heuristic, not a tested trading system.

The post warns that the criteria focus on short-term price action and omit broader market conditions and other company or policy risks. It suggests adding long-term trend measures and technical indicators such as MACD or RSI. Although it includes sample code for several indicators, the excerpt is incomplete and does not provide a coherent backtest, performance evidence, transaction costs, or rules for entries and exits. The revenue condition also depends on historical figures and does not establish future growth.

Key ideas

• The screen requires five moving averages, from 5 to 60 days, to converge.
• It also selects stocks with at least two limit-up sessions within ten days.
• The revenue filter requires 2021 revenue divided by 2018 revenue to exceed 1.1.
• The author suggests long-term trend measures and additional indicators as possible refinements.
• The post gives no backtest evidence or complete trading and risk-management rules.

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