Screening Chinese Stocks by Moving-Average Convergence, Turnover, and Trend

Summary

This post proposes a Chinese stock screen combining three conditions: at least five moving averages converge, the prior day’s turnover exceeds 8%, and the 30-day moving average is rising. The author interprets convergence as relatively stable prices, high turnover as strong recent trading interest, and an upward average as a positive trend. The combined screen is intended to find stocks that are active while showing a rising, comparatively steady price pattern.

The post suggests adding valuation filters and chart signals, including price-to-earnings and price-to-book comparisons with industry averages, a moving-average crossover, or an upward breakout. It provides sample code, but parts of the implementation do not clearly match the stated criteria: the turnover calculation is not evidently a turnover-rate calculation, exact equality between averages is a restrictive definition of convergence, and later filtering steps reset the candidate list. No backtest results or performance evidence are supplied. The author notes that trends can reverse and activity can fade, and that market uncertainty limits the strategy’s reliability.

Key ideas

• The proposed screen combines converging moving averages, high prior-day turnover, and a rising 30-day average.
• The post treats average convergence as a sign of comparatively stable prices, though it does not define a tolerance for convergence.
• Suggested additions include industry-relative valuation measures and chart-based crossover or breakout signals.
• The sample implementation has apparent mismatches with the stated turnover measure and sequential filtering logic.
• The post provides no performance results and warns that trends and trading activity can change.

Tags

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