Metaverse Stock Screening with Three Moving Average and MACD Crosses

Summary

This note describes a Chinese equity screening rule for stocks associated with the metaverse theme. It selects candidates priced below 12 yuan when three bullish crossovers occur: MACD crossing its signal line, the five day moving average crossing the ten day average, and the five day average crossing the twenty day average. The article frames the price ceiling as a valuation consideration, though price alone does not establish that a stock is undervalued.

The document gives indicator formulas and a sample Python approach, but the sample's conditions do not faithfully test all three stated crossovers: it checks whether MACD is positive and whether several averages are ordered, rather than detecting crossover events. It offers no backtest, performance evidence, or defined holding and exit rules. The article itself flags sector downturns as a risk and suggests adding financial and macroeconomic information, but those additions are not specified as measurable rules. The screen is therefore a basic candidate filter, not a complete or validated trading strategy.

Key ideas

• The screen focuses on metaverse themed equities priced below 12 yuan.
• It requires MACD to cross its signal line and the five day average to cross both the ten and twenty day averages.
• A price ceiling is not, by itself, evidence that a stock is undervalued.
• The sample code checks indicator levels and moving average order rather than all stated crossover events.
• The document provides no backtest or portfolio rules to establish the screen's performance.

Tags

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