Selecting Chinese Stocks by Moving-Average Alignment and RSI

Summary

This note proposes screening stocks for at least five moving averages that align, a share price around 18.5 yuan, and a historical year condition of 2021. Its sample calculation uses moving averages over 5, 10, 20, 50, and 200 trading days, then applies additional filters for positive profits and a positive MACD reading. The stated idea is that agreement among short- and longer-term averages may indicate a coherent trend.

The article cautions that the approach does not initially account for company fundamentals and may perform poorly during sharp market moves. It recommends assessing profitability, financial condition, industry position, and additional technical indicators. The document provides illustrative code but no backtest, return data, or evidence that the filters add predictive value. The written description and example are not fully consistent: the described price and year filters do not match the code precisely, and the code's ordered-average condition is not simply a test of averages overlapping. These details require clarification before treating the example as an implementable strategy.

Key ideas

• The proposed screen looks for alignment among five moving averages spanning short to long lookback periods.
• The article also mentions a price condition near 18.5 yuan and a 2021 time condition.
• The sample extends the screen with positive profit and MACD filters, though these are framed as possible refinements.
• The author identifies missing fundamental analysis and exposure to broad market swings as limitations.
• No historical performance evidence is provided, and the code does not consistently match the written rules.

Tags

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