Screening Chinese Stocks by Moving-Average Confluence and Price Filters

Summary

This proposed Chinese-equity screen combines three conditions: at least five moving averages are described as overlapping, the stock’s quoted gain at 9:25 is below 6%, and its return over ten days is positive but below 35%. The rationale is to seek price consolidation near multiple averages while avoiding stocks with a large pre-open rise or an already sharp recent advance. The post also suggests adding indicators or valuation filters and describes possible risks, including missed moves and losses after selection.

The document provides no backtest, performance evidence, precise definition of how close moving averages must be to count as overlapping, or clear operational rules for the ten-day return. Its sample Python is explicitly illustrative and does not actually calculate moving-average confluence; some shown price comparisons also do not match the stated percentage filters. Treat the criteria as a rough screening idea requiring correct data, definitions, and out-of-sample evaluation, rather than as a validated strategy.

Key ideas

• The proposed screen requires at least five moving averages to overlap.
• It also limits the quoted 9:25 gain and requires a positive ten-day return below the stated upper bound.
• The rationale is to find consolidation while filtering out sharp opening or recent gains.
• The document identifies the risk that a selected stock may decline after entry or rise after the screening time.
• The illustrative code does not implement the moving-average overlap test or reliably reproduce all stated filters.

Tags

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