Screening Equities with Aligned Moving Averages and a 9:25 Price Filter
Summary
The article describes a Chinese equity screening idea that combines at least five overlapping moving averages, a current-day upward spread among moving averages, and a 9:25 a.m. gain below 6%. It interprets overlapping averages as a stable or trendless phase, upward separation as a possible emerging rise, and the opening price filter as a potential entry signal.
The article offers a qualitative rationale rather than performance evidence: it gives no backtest, sample, benchmark, or execution details. It acknowledges that price trend and opening gain alone omit company fundamentals, industry conditions, and broader market direction. It suggests adding those considerations and a stop loss, but does not specify how to measure them or set the stop. The proposed screen is therefore an initial selection concept, not a fully defined or validated trading strategy.
Key ideas
- The screen looks for stocks with at least five overlapping moving averages.
- It also requires the day’s moving averages to spread upward and the 9:25 gain to remain below 6%.
- The article treats these price conditions as possible signs of stability, an emerging rise, and an entry opportunity.
- It provides no backtest or quantified evidence that the conditions predict returns.
- It identifies fundamentals, industry outlook, broad market weakness, and stop placement as relevant risk considerations.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.