Screening Chinese Stocks with Moving Average Alignment and Revenue Growth

Summary

This stock-selection recipe combines a moving-average condition, an opening-price filter, and a revenue growth test. It targets Chinese equities whose 5-, 10-, 20-, 30-, and 60-day moving averages are described as overlapping, whose 9:25 a.m. gain is below 6%, and whose 2021 revenue divided by 2018 revenue exceeds 1.1. The author interprets aligned averages as agreement across short and intermediate horizons and treats revenue growth as a business-quality screen.

The post outlines risks from volatile markets disrupting moving-average signals and suggests adding longer averages. It gives no backtest results or evidence that the filters improve returns. The accompanying sample code appears inconsistent with the stated rule: it checks for five distinct average values rather than proximity, and its daily data fields do not establish the specified 9:25 price or historical revenue comparison. Treat the rules as a screening concept requiring careful implementation and validation.

Key ideas

• The screen combines five moving averages with an opening gain limit and a multi-year revenue ratio.
• The author interprets closely aligned averages as broad agreement about price direction.
• The post suggests longer moving averages as a possible refinement.
• No performance evidence is provided, and the sample code may not implement the written conditions correctly.

Tags

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