Combining Stock Amplitude, Moving Averages, and Profit Growth
Summary
This post presents an A-share screening approach that combines price movement, a short-term moving-average condition, and company earnings growth. It seeks stocks with amplitude above 1, a price and moving-average relationship described as upward divergence, and parent-company net profit growth above 20% and at most 100%. The intended use is to locate companies with both recent price activity and improving reported profits.
The document supplies indicator and Python examples, but the implementation is not fully consistent: the moving-average comparisons are expressed in a way that may not mean an upward trend, and the code substitutes return on equity for profit growth. It offers no backtest or performance evidence. It also notes that short-term prices and earnings can be affected by market cycles, seasonality, and one-off factors, and suggests combining the screen with longer-term trend or valuation measures.
Key ideas
- The proposed screen combines amplitude above 1, an upward moving-average condition, and profit growth between above 20% and 100%.\nThe strategy mixes short-term price behavior with a fundamental earnings filter.\nThe sample code may not implement the stated trend and earnings conditions faithfully.\nSeasonality, one-off earnings factors, and market cycles can distort the inputs.
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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.