Chinese Stock Screening with Weekly Moving Average and Volume Signals

Summary

This document describes a short-term Chinese stock screen using daily amplitude, a weekly five-period moving average above a ten-period average, and a prior-day volume-based control signal. The accompanying formulas define amplitude from the day’s high and low relative to the previous close, and compare volume associated with rising and falling prior closes over short rolling windows. A Python example calculates these conditions from historical daily data and selects stocks meeting the thresholds.

The article frames the combination as a way to identify stocks with favorable price movement and buying pressure, but it provides no backtest results or evidence of predictive performance. It cautions that the approach is sensitive to short-term market conditions, may overlook fundamentals, and could select stocks vulnerable to pullbacks after sharp gains. It suggests adding other technical measures or fundamental information, without testing those additions. The code’s data assumptions and indicator construction should be checked before practical use.

Key ideas

• The screen combines daily amplitude, a weekly moving average relationship, and prior-day volume ratios.
• The volume signals compare activity on days following rising and falling closes over rolling windows.
• The article provides formulas and a Python stock-selection example.
• The approach emphasizes short-term price conditions and may miss fundamental risks.
• No backtest or measured predictive results are supplied.

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