Chinese Stock Screening with Volume, Expanding Averages, and Trend Filters
Summary
This stock-selection note combines relative trading volume with moving-average direction. It ranks stocks by volume ratio and selects those whose 5-, 10-, 20-, and 60-day averages are spreading upward, while also requiring the 30-day average to rise. The approach uses trading activity as a rough proxy for capital interest and aligned averages as evidence of an upward trend. It is a screening recipe rather than a fully specified trading system: the note does not define entry timing, exits, position sizing, or test results.
The author warns that a trend may have ended or may reverse, and that broad market conditions can change the outcome. Suggested refinements include checking other technical indicators, setting stop levels, and responding to market changes. These are general suggestions; no rules for combining indicators or placing stops are supplied. The document presents no performance evidence, so its screening criteria should not be read as proof of profitability.
Key ideas
- The screen ranks stocks by volume ratio to identify relatively active names.
- It selects stocks with upward-spreading short and medium-term moving averages and a rising 30-day average.
- The author treats volume strength and aligned averages as signs of investor interest and an upward trend.
- Trend reversal and changes in market conditions are identified as risks.
- Additional indicators and stop levels are suggested, but their use is not specified.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.