Screening Stocks with a 20-Day Above 120-Day Moving Average

Summary

This note describes a Chinese stock selection rule based on daily price range, an exact closing-price condition, and a moving-average comparison. A stock qualifies when its high-low range exceeds a threshold, its close equals the stated price, and its 20-day moving average is above its 120-day moving average. The article provides an indicator formula and a Python sketch for calculating rolling averages and filtering a stock list.

The document frames the moving-average condition as a way to identify stocks with a positive longer-term trend, but it offers no backtest or performance evidence. It also warns that the rule omits company financials, management, industry outlook, and broader market conditions. The exact-price requirement is unusually restrictive, and parts of the sample Python logic do not clearly match the stated range condition; implementation and data handling therefore need validation before use.

Key ideas

• The screen combines a price-range threshold, an exact closing price, and a moving-average trend filter.
• The trend condition compares the 20-day moving average with the 120-day moving average.
• The article includes formula and Python examples for applying the conditions.
• Fundamental and market context are absent from the selection rule.
• The note provides no evidence that the screen produces stable or profitable results.

Tags

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