Combining Moving Average Alignment, a KDJ Signal, and a Long-Term Trend Filter

Summary

This Chinese A-share screening idea combines three technical conditions: at least five moving averages are described as converging, the KDJ indicator has just formed a bullish crossover, and the 20-day moving average is above the 120-day average. The post interprets convergence as price stability and the KDJ crossover and longer-term moving average relationship as signs of upward direction. Its code names 5-, 10-, 20-, 60-, and 120-day averages, but the actual convergence check only tests equality among the 5-, 10-, and 20-day averages.

The code also implements the stated conditions as separate early returns, so it can pass a stock when any one condition holds rather than requiring all of them together. Its KDJ logic is not a clear test for a fresh crossover, and the example uses close prices alone. No backtest or performance evidence is supplied. The post notes possible overtrading and losses during pullbacks, and suggests adding other indicators or fundamental data, without evaluating those changes.

Key ideas

• The stated screen combines moving average convergence, a recent KDJ bullish crossover, and a 20-day average above the 120-day average.
• The example calculates five moving averages but checks equality only among three of them.
• Its code returns a positive selection when any one condition is met, which differs from the stated combined filter.
• The post gives no performance evidence and flags turnover and pullback risks.

Tags

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