Equity Screening with Moving Average Confluence and Bollinger Bands

Summary

This post describes a China equity screening idea based on price compression and a Bollinger Band location. It selects stocks whose 5, 10, 20, 60, and 120 day moving averages are described as overlapping, whose close lies between the Bollinger middle and upper bands, and whose indicated 9:25 gain is below 6%. The post interprets clustered averages as potential support or resistance and the band position as relatively elevated, while the opening filter avoids especially sharp early gains.

It offers no backtest, performance statistics, or evidence that the conditions predict returns. The accompanying sample code does not implement the complete stated screen: it compares moving average values for equality and does not visibly apply the Bollinger or opening-gain conditions. The post itself notes that the selection omits company and industry fundamentals and may produce a small, biased sample; it suggests adding valuation and momentum indicators, though it does not evaluate those changes.

Key ideas

• The screen combines clustered moving averages, a close between the Bollinger middle and upper bands, and a capped indicated opening gain.
• The post treats moving average overlap as a possible sign of support or resistance, not as validated predictive evidence.
• It provides no performance test, so the strategy's predictive value and trading costs remain unknown.
• The sample code does not fully implement the written rules and should not be taken as a verified backtest.

Tags

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