Chinese Stocks Screened by Weekly Moving Average Crossovers and Range
Summary
This note describes a Chinese stock screening rule combining three conditions: daily price range above 1% of the previous close, a stock code beginning with 60, and a weekly short moving average crossing above a longer moving average. It presents the crossover as a possible sign that a trend is starting and the range filter as a way to select more volatile stocks. The document includes example formulas and Python-style logic for applying the filters.
The note gives no backtest, performance figures, or evidence that the signal predicts returns. It cautions that the moving average crossover can produce false signals and that high-range stocks carry more risk. It suggests supplementing the screen with technical, financial, or multi-factor measures, but does not specify or test those additions. The screening rule is therefore a simple candidate-selection method rather than a complete trading system; it provides no entry execution, exit, or position-sizing rules.
Key ideas
- The screen requires a daily high-low range above 1% of the previous close.
- It limits candidates to stocks whose codes begin with 60.
- A short weekly moving average crossing above a longer one is treated as a possible trend-start signal.
- The note warns that crossovers can be false and that high-volatility stocks carry greater risk.
- It provides no performance test or complete trade-management rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.