Combining Moving-Average Convergence, Turnover, and Limit-Up History in a Stock Screen

Summary

This article outlines an A-share screening method that combines three conditions: convergence around five moving averages, a turnover measure within a specified band, and at least two limit-up events in the prior 500 days. The averages named are the 5-, 10-, 20-, 60-, and 120-day lines. The description characterizes convergence by comparing the closing price with the average of those lines, although its wording does not clearly define a conventional distance or overlap calculation.

The stated turnover condition is above 2% and below 9%, calculated using recent turnover and float market capitalization, but the explanation is ambiguous about the exact formula. Limit-up frequency is checked using top-trader data. The post presents the method as a quick way to find technically active shares, but supplies no backtest or return evidence. It notes that technical signals can be distorted by market moves, fundamental quality is omitted, and the cited data may be incomplete. Suggested refinements include adding other technical indicators, fundamental information, and data sources.

Key ideas

• The screen uses five moving averages to identify stocks trading near a common price area.
• It applies a turnover band above 2% and below 9%.
• It requires at least two limit-up events over the preceding 500 days.
• The post warns that its technical focus and data inputs may omit important information.

Tags

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