Combining Buy-Flow, Weekly Trend, and Moving-Average Filters for Stock Selection

Summary

This Chinese equity screening approach combines three conditions: today’s increase in holdings must exceed 5%, the weekly price must cross above its 30-week moving average, and the 30-day moving average must be rising. Together, these are intended to capture buying pressure and both longer-term and nearer-term upward trends. The article’s sample pseudocode describes these checks and proposes ranking qualifying stocks by a composite score.

The post offers a rationale for the filters but no backtest, market data, or evidence that the combination is profitable. It notes that buying flows may reflect temporary activity or distribution, while upward trends and moving averages can reverse or react to short-term price swings. It recommends combining the inputs in a score and considering other filters, but does not define the scoring formula or explain how to validate it. The conditions are therefore screening ideas rather than a tested trading system.

Key ideas

• The proposed screen requires a daily increase-in-holdings ratio above 5%.
• It also requires a weekly close above the 30-week moving average and a rising 30-day average.
• The three filters are framed as measures of buying pressure and trend at different horizons.
• A composite score is suggested, but its formula and empirical validation are not provided.
• The article warns that flows and moving averages can be temporary or misleading.

Tags

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