Metaverse Stocks with a Ten-Day Moving Average Reclaim and Trend Filter

Summary

This note describes a Chinese equity screen for metaverse-related stocks. It looks for an opening price near or above the ten-day moving average after the prior session’s close was below it, then requires the current close to be above the 10-, 20-, 30-, 60-, and 120-day moving averages. The stacked averages are intended to identify stocks at the start of a stronger upward move.

The document provides indicator conditions and sample implementation ideas, but no backtest results or performance evidence. Its Python example uses a different approximation for the opening-price condition, calculating a moving average from recent opening prices and comparing it with an opening price. The note cautions that technical screening can miss company fundamentals and that identifying an early uptrend is subjective. It suggests adding fundamental analysis and applying disciplined entry and exit rules, while leaving those rules and risk controls unspecified.

Key ideas

• The screen first restricts candidates to the metaverse industry.
• It seeks an opening price crossing near the ten-day moving average after the prior close was below that average.
• It requires the close to exceed five moving averages ranging from 10 to 120 days.
• The note provides no evidence of historical or live performance, and its code examples do not implement the opening-price test identically.
• Fundamental analysis and clearer entry, exit, and risk rules are suggested as improvements.

Tags

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