Chinese Stock Screening with Price Swings, Recent Gains, and Moving Averages

Summary

This stock selection method combines a volatility filter, a recent price surge, and a moving average trend check. It looks for stocks with an amplitude above 1, at least one daily gain of 10% or more in the previous 25 trading days, and an average price above the five-day moving average. The article then proposes broadening the trend test to short-, medium-, and long-term averages and considering company fundamentals and other indicators.

The post gives example indicator formulas and Python-style screening logic, but it reports no backtest, performance figures, or evidence that the filters predict future returns. Its own caveats are that a five-day average gives a narrow view of trend and that technical filters omit company fundamentals and changing market conditions. The example code also leaves fundamental and additional-indicator checks as placeholders, so the expanded selection rules are not fully specified.

Key ideas

• The screen combines high amplitude with a recent daily gain of at least 10% and price strength relative to a five-day average.
• The proposed refinement checks price against short-, medium-, and long-term moving averages.
• The article recommends adding fundamental measures and other technical indicators.
• The post provides illustrative formulas but no performance evaluation, and it warns that the filters alone give an incomplete view.

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