Small-Cap Profitable Stocks with Moving-Average Confluence and Opening-Price Filters

Summary

This post outlines a Chinese equity screen combining a market-cap ceiling, profitable-company status, an opening price near the 10-day moving average, and confluence among five moving averages. It names 5-, 10-, 20-, 30-, and 60-day averages in its proposed logic. The accompanying rationale treats aligned averages as a sign of consistent short- and medium-term direction, while proximity to the 10-day average is framed as price stability or support. It suggests adding measures such as return on equity and price-to-book ratio.

The document gives no historical results or evidence that the conditions predict returns. Its code example does not faithfully implement the stated method: the moving-average calculations use the same rolling window, the selection checks an ordered moving-average trend rather than confluence, and the opening-price condition is represented using closing prices. The post itself notes that the screen omits longer-term trends and wider company and industry factors, so its proposed investment rationale should be treated cautiously.

Key ideas

• The screen combines profitability, a market-cap limit, opening-price proximity to the 10-day average, and five-average confluence.
• The proposed averages are 5, 10, 20, 30, and 60 days.
• The example code does not correctly implement several conditions stated in the screening logic.
• No backtest or performance evidence is provided, and longer-term and company-specific factors are acknowledged as gaps.

Tags

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