Selecting Chinese Stocks with Converging Moving Averages

Summary

This stock screen combines three conditions: a rising 30-day moving average, a 60-day moving average below 60, and convergence among the 20-, 50-, 100-, 200-, and 60-day averages. The post frames the five averages as short-, medium-, and long-term trend measures. It interprets their convergence as a sign of stable price movement that could precede a rise, though it does not define a numerical tolerance for when averages count as converged.

The author cautions that sharp market swings can disrupt the alignment and reduce the screen’s accuracy. Suggested refinements include adding longer moving averages and incorporating volume to assess activity and sentiment. The post provides a partial Python example and platform instructions, but no complete reproducible implementation, backtest, performance figures, or comparison with a benchmark. The screen is therefore a heuristic for finding candidates, not evidence of a profitable strategy. The 60-day average threshold and stock universe condition are stated, but the market listing convention is not explained.

Key ideas

• The screen requires the 30-day moving average to be rising.
• It selects stocks whose 20-, 50-, 100-, 200-, and 60-day moving averages converge.
• It also requires the 60-day moving average to be below 60.
• The post suggests adding more moving averages or volume as possible refinements.
• No backtest or measured performance is provided, and convergence is not precisely defined.

Tags

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