Small-Cap Stock Screening with Recent Limit-Ups and Moving-Average Alignment

Summary

This stock-screening proposal combines three conditions: company market value below 10 billion yuan, no reported losses, and more than two limit-up days in the prior 10 days. It also seeks stocks with at least five moving averages converging, which the article interprets as agreement among short- and medium-term trends. The accompanying Python example lists moving-average comparisons across many lookback windows, though the excerpt ends before the code is complete and does not clearly implement the business or limit-up filters.

The article argues that recent price strength and moving-average alignment may help identify shares with upward momentum, while a profitability and size screen adds a basic company-quality constraint. It provides no historical test, performance figures, or precise definition of how close moving averages must be to count as converged. It warns that the screen can miss promising companies or include weak ones, and that changing market conditions matter. Valuation measures and additional technical indicators are suggested as possible extensions, not as validated improvements.

Key ideas

• The proposed screen combines a market-value ceiling, absence of losses, recent limit-up frequency, and moving-average convergence.
• The article interprets multiple converging averages as agreement across trend horizons.
• The code excerpt is incomplete and does not clearly implement every stated filter.
• The document gives no backtest or performance evidence and does not define a convergence threshold.
• Valuation measures and other technical indicators are suggested for further refinement.

Tags

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