Screening for Strong Chinese Stocks with Recent Limit-Ups and Moving Average Trends

Summary

This note describes a Chinese equity screen that combines amplitude above a threshold, more than two limit-up days within ten days, and a 20-day moving average above the 120-day average. The moving-average relationship is presented as a way to favor stocks with stronger intermediate trends, while the recent limit-up count and amplitude select for active, volatile price behavior. Formula and Python examples are included to illustrate the conditions, with the Python example also excluding several financial sectors and ranking candidates by trading volume.

The article notes that moving averages lag, a narrow screen may return too few names, and relying on technical indicators can overlook other relevant factors or reduce diversification. It proposes adding relative strength or RSI, adapting screening by sector, and applying risk controls. The document gives no performance results, and the sample code has implementation limitations, including inconsistent handling of the lookback and limit-up conditions; the screen should therefore be treated as a sketch rather than verified evidence of an effective strategy.

Key ideas

• The screen combines amplitude, a recent limit-up count, and a 20-day average above the 120-day average.
• The note treats the longer-term moving-average comparison as a trend filter and recent limit-ups as a strength signal.
• It warns that moving averages lag and that a narrow screen can reduce candidate count and diversification.
• The article suggests adding strength measures, sector-specific rules, and risk controls.
• No performance evidence is given, and the sample code may not implement all conditions consistently.

Tags

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