Screening Chinese Stocks for Moving-Average Alignment and Recent Limit-Ups

Summary

This post proposes a Chinese equity screen that combines moving-average alignment with recent limit-up moves. Its initial criteria are at least five moving averages meeting together and a limit-up within the prior 25 days. The post interprets these conditions as signs of an established trend and potential price strength, then suggests adding market capitalization and valuation filters to refine the candidate list.

The final stated screen requires the close to be above the 5-, 10-, 20-, 60-, and 120-day moving averages, at least three limit-ups within the prior 25 days, market capitalization below 10 billion yuan, and a price-to-earnings ratio below 20. These are proposed selection rules, not reported test results: the document provides no performance statistics, benchmark, sample definition, or transaction-cost analysis. It cautions that price swings can cause losses, the conditions do not guarantee gains, and entries and exits require judgment. It also recommends diversifying investments. The post does not resolve how its initial moving-average overlap criterion relates to the final rule of price above each average.

Key ideas

• The proposed screen combines moving-average conditions with recent limit-up events.
• The final rules require the close to exceed five specified moving averages and at least three limit-ups in the prior 25 days.
• The final screen also sets market-capitalization and price-to-earnings thresholds.
• The post gives no backtest evidence and warns that the screen cannot guarantee gains.
• It recommends considering entry and exit timing and diversifying holdings.

Tags

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