Combining Price Amplitude, Main-Force Control, and Moving Average Trends

Summary

This Chinese stock screening proposal looks for shares with price amplitude above a stated level, a previous-day condition described as main-force control, and a 20-day moving average above the 120-day moving average. The author presents the moving averages as indicators of broader trend and the amplitude and control measure as short-term signals. The accompanying indicator references define the moving averages and offer a simple ratio as a proxy for the control condition; illustrative Python filtering also includes extra constraints that are not part of the stated final rule.

The document provides no backtest, return series, or evidence that the combination predicts gains. It cautions that moving averages may not capture a stock's trend, technical measures do not represent all market risks, and changing market conditions may require adjustment. It suggests adding company fundamentals, valuation, and market context, and tailoring risk controls to the investor. The terms and implementation are not precisely reconciled, so the screen would need careful definition and validation before use.

Key ideas

• The proposed screen requires price amplitude above a threshold and the previous day's main-force control condition.
• It adds a trend filter requiring the 20-day moving average to exceed the 120-day moving average.
• The document offers indicator references and sample filtering logic, but the code includes conditions beyond the final screen description.
• No empirical performance evidence is supplied, and the author highlights limitations of technical indicators and changing markets.
• The suggested refinements include fundamentals, valuation, market context, and risk controls.

Tags

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