Screening Stocks by Moving Average Trend, Price, and Daily Institutional Buying

Summary

This post presents a Chinese equity screen using three conditions: the 20-day moving average is above the 120-day moving average, the share price is below 12, and the day's institutional buying share exceeds 5%. It interprets the moving-average relationship as a trend filter and the buying measure as a sign of institutional demand. The price ceiling further narrows the candidate list. The explanation also discusses the difference between price and moving averages, although its description of that relationship does not clearly match the stated screen.

The post acknowledges that relying on a single day's institutional buying can leave the screen empty and that trading-flow signals overlook company fundamentals. It proposes combining the signal with financial statement and profitability analysis. A code example sketches data retrieval and calculations, but it is truncated and does not clearly demonstrate a complete, reproducible definition of the buying-share measure. No backtest, performance results, or evidence of predictive value is supplied, so the rules should be treated as a screening idea rather than a validated trading strategy.

Key ideas

• The stated screen requires the 20-day moving average to exceed the 120-day moving average, price below 12, and institutional buying share above 5% for the day.
• The post treats the moving-average comparison as a trend filter and buying activity as a potentially supportive signal.
• It warns that a daily institutional-flow condition can produce no candidates and ignores company fundamentals.
• It suggests adding financial and profitability analysis, but does not specify a finished combined strategy.
• The example code is incomplete, and the post supplies no performance evidence.

Tags

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