Screening Stocks for Rising 30-Day Averages and Moving-Average Convergence

Summary

This note describes a Chinese equity screen combining three conditions: at least five moving averages converge at a similar price, recent return is positive, and the 30-day moving average is rising. The convergence is interpreted as several trend measures clustering around a price level, while positive return and the rising 30-day average aim to favor stocks with upward movement. The article also suggests adding company financial strength and further technical indicators when refining the screen.

The evidence is a qualitative explanation and an illustrative code reference, not a reported backtest or performance analysis. The selection rules are described broadly, and the sample code does not clearly implement the stated requirement for five converging averages; exact equality among averages is also a brittle definition of convergence. The author cautions that price-only technical screening can misread moves driven by sentiment or company results and can miss financial condition and profitability. No holding period, transaction costs, benchmark, or risk-adjusted results are supplied.

Key ideas

• The screen looks for at least five moving averages clustered near one another.
• It also requires positive recent return and an upward-sloping 30-day average.
• The note treats moving-average convergence as a possible area of price support.
• It recommends considering financial strength and additional indicators alongside price trends.
• The document provides no backtest evidence, and its code example does not clearly match every stated condition.

Tags

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