Shenzhen Main Board Screen Using Moving Averages and Valuation Ratios

Summary

This stock screen combines three filters: at least five moving averages are described as converging, price-to-earnings and price-to-book ratios fall within specified ranges, and the 20-day moving average is above the 120-day average. The first condition is presented as a sign of price stability, the valuation limits as a way to identify relatively inexpensive stocks, and the moving-average comparison as evidence of stronger short-term than long-term trend. The post offers a rationale for combining these criteria but includes no backtest, constituent examples, or return data to support the claims.

The author cautions that selected shares may still be overpriced, may not suit an investor’s risk tolerance, or may conflict with a longer-term plan. Suggested refinements include revisiting the valuation limits and incorporating more indicators or market data. The selection logic is therefore a screening proposal, not a complete portfolio or tested trading system; it also does not specify how to resolve the incomplete final rule text or manage positions after selection.

Key ideas

• The screen targets Shenzhen main-board stocks with specified price-to-earnings and price-to-book ranges.
• It requires at least five moving averages to converge, though the post does not define the precise calculation.
• The 20-day moving average must be above the 120-day moving average.
• The author presents the valuation filters as a way to find lower-priced stocks and the average comparison as a trend filter.
• No performance testing is provided, and the post highlights valuation, risk-fit, and investment-horizon concerns.

Tags

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