Screening Chinese Stocks by Short-Term Gains and Moving Average Alignment

Summary

This note describes a Chinese equity screen combining daily amplitude above 1%, a positive 10-day gain below 35%, and at least five moving averages aligned. It presents the alignment as a possible sign of a stable trend and pairs the technical filters with suggested checks on trading volume, market capitalization, and company fundamentals. The article also recommends setting stop losses and applying risk controls.

The evidence is a proposed rule set and example indicator and Python implementations; it does not report a historical backtest or performance results. The examples do not fully match the stated criteria, so the actual implementation would need review before use. The author cautions that short-term price behavior can be volatile and that technical filters alone omit important information about a company and its trading activity. The screen is therefore a starting point for research rather than evidence of investment value.

Key ideas

• The proposed screen combines daily amplitude, a bounded positive 10-day gain, and moving-average alignment.
• The article treats alignment among several moving averages as a possible sign of a stable trend.
• It recommends adding volume, market capitalization, and fundamental analysis to refine the candidate list.
• Short-term volatility and missing company information are identified as risks.
• The example implementations should be checked because they do not fully express the stated screening rules.

Tags

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