Small-Cap Stock Screen Using Moving-Average Confluence and Momentum

Summary

This A-share screening proposal combines technical and fundamental filters: at least five moving averages should converge, the ten-day price gain must be positive but below 35%, and the company must have a market value below 10 billion yuan with no losses. The post’s final stated logic adds valuation limits and upward momentum, though its sample Python code uses different thresholds and proxy conditions. That inconsistency makes the implementation an unreliable specification without clarification.

The post argues that clustered averages may indicate a stable price area and that modest recent gains can avoid extreme short-term moves. It also acknowledges that smaller-company screening may omit attractive larger firms and recommends broader fundamental analysis. No backtest or measured results are presented, and the code’s filters do not faithfully implement all the stated criteria. Readers should treat this as an exploratory screen, not evidence of a validated trading strategy.

Key ideas

• The proposed screen combines moving-average convergence, a positive but bounded ten-day gain, and a small-cap profitability condition.
• Its final description adds valuation and upward-momentum filters.
• The sample code does not consistently match the prose criteria.
• No empirical performance results are provided, and the author advises broader fundamental review.

Tags

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