Screening Chinese Stocks with Weekly MA Crossovers and Free Float

Summary

This note proposes a Chinese stock screen using three conditions: daily amplitude above 1%, a weekly five-period moving average crossing above the ten-period average, and free-float shares no greater than 5.5 billion. It frames amplitude as a measure of price movement, the moving-average crossover as a trend signal, and free float as an indicator of market availability. It provides formulas and sample code that also adds RSI and KDJ thresholds, although those extra conditions are not part of the headline screen.

No backtest or return evidence is reported. The article cautions that the screen may overemphasize technical indicators and that free-float measures can be misleading. It recommends considering fundamentals and additional indicators, but does not establish that these additions improve results. The sample calculation is illustrative and should not be read as a validated trading system.

Key ideas

• The proposed screen combines amplitude, a weekly moving-average crossover, and a free-float ceiling.
• The crossover condition is a five-period weekly average moving above a ten-period average.
• The sample code also applies RSI and KDJ filters beyond the headline criteria.
• The note reports no backtest or evidence of profitability.
• It recommends evaluating fundamentals and warns that technical and free-float measures have limitations.

Tags

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