Shenzhen Main Board Screen Using Valuation and Moving-Average Convergence

Summary

This stock-selection approach combines moving-average convergence, valuation limits, and a historical year filter. It seeks shares with at least five overlapping moving averages, listed on the Shenzhen Main Board, with price-to-earnings ratios from 0 to 29.01 and price-to-book ratios from 0 to 3.11. It also specifies stocks from 2021, which the post associates with selecting shares that performed well that year.

The stated rationale is that aligned moving averages indicate a more stable price pattern, while bounded valuation ratios may identify relatively inexpensive shares. The year filter is intended to focus on a past market period. The post acknowledges that a simple screen may miss short-term movements, may be affected by broad market conditions or shifts in market style, and does not guarantee that low-valuation shares are attractive. It suggests adding market capitalization, industry, price, volume, or other strategy rules. The document gives no backtest results or evidence that the listed criteria improve returns, and its code reference is incomplete, so the method is best read as a screening concept.

Key ideas

• The screen combines at least five overlapping moving averages with Shenzhen Main Board membership.
• It sets price-to-earnings and price-to-book ranges of 0–29.01 and 0–3.11, respectively.
• The document also filters for stocks associated with 2021, without specifying a reproducible date convention.
• The post links moving-average alignment to stability but offers no performance evidence.
• Market, valuation, and style risks may affect the results; industry and market-cap filters are suggested as additions.

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