Combining a Rising 30-Day Average with a Rounded Price Pattern

Summary

This post proposes a Chinese stock screen combining membership in the metaverse theme, an upward-moving 30-day moving average, and a rounded price pattern. It presents the pattern as a way to describe recent price structure and includes sample indicator logic for identifying themed stocks, comparing price with its moving average, and checking a rough price-shape condition.

The author warns that rounded formations are subjective and unreliable because prices are partly random. Popular themed shares may also attract competition, while the screen can omit relevant technical and fundamental information. Suggested extensions include evaluating other chart patterns and adding valuation or financial measures such as price-to-earnings and price-to-book ratios. The post offers no backtest or performance evidence, and its sample pattern test is a simplified illustration rather than a validated definition of a rounded formation.

Key ideas

• The proposed screen combines metaverse theme membership with an upward 30-day moving average and a rounded price shape.
• The post presents chart shape as a subjective selection aid rather than a reliable signal.
• Popular themed stocks may face greater investor competition.
• The author suggests adding other chart patterns, valuation measures, and financial data.
• No backtest or performance results are provided, and the sample shape check is simplified.

Tags

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