Chinese Stock Screening with Reversal Patterns and Three Moving-Average Crosses

Summary

This Chinese equity screen combines three conditions: daily amplitude above one percent, a reversal or engulfing-style pattern, and simultaneous bullish crosses among three indicator pairs. The specified pairs are a 10-period and 50-period DMA, a 20-period and 50-period moving average, and a 5-period and 20-period moving average. The article provides formula and Python examples intended to implement the screen and sort candidates by heat rank.

The source warns that the rules can select stocks with weak fundamentals and suggests adding measures such as rolling relative strength or dividend yield. It supplies no backtest, market-period analysis, or evidence of returns. The Python example also describes indicator conditions as being above one another, which may not establish that fresh crossovers occurred on the same day; the reversal definition differs between the formula and Python snippets. These details limit reproducibility and make the screen a candidate filter rather than a validated strategy.

Key ideas

• The screen requires daily high-low amplitude above one percent and a reversal-style pattern.
• It combines crosses of three moving-average or DMA pairs with different lookback periods.
• The article includes formula and Python examples, but their pattern and crossover definitions are not fully consistent.
• The source cautions that technical filters do not address company fundamentals and presents no performance test.

Tags

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