Combining Volume Ratio Ranking with Moving Average Filters

Summary

This Chinese-language post outlines an equity screening rule that ranks stocks by volume ratio and selects the top 100. It also proposes comparing rolling 7-day and 30-day moving averages, describing the filter as requiring the shorter average to be above the longer one and their ratio to be below 0.2. The post gives basic formulas for volume ratio and the 7-day average, but provides no backtest results or performance evidence.

The author interprets high relative volume as a possible sign of capital inflow and the moving-average condition as a sign of an upward trend. The post cautions that volume rankings may be misleading when overall market activity is low, and that the stated average ratio may fail to identify a genuine uptrend. It suggests adding turnover, MACD, market capitalization, or industry filters. The rules and their rationale are presented without validation, and the ratio condition appears unusual for the stated trend interpretation.

Key ideas

• The proposed screen ranks stocks by volume ratio and keeps the top 100.
• It combines that ranking with a condition involving 7-day and 30-day moving averages.
• The post offers no backtest or measured evidence that the screen is profitable.
• Low overall trading activity can make relative-volume rankings less informative.
• Turnover, MACD, market capitalization, and industry filters are suggested as possible additions.

Tags

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