Stock Screen Combining Moving-Average Alignment and Weekly MACD

Summary

This document outlines a Chinese stock screen requiring at least five moving averages to converge, weekly MACD to be above its zero line, and the 20-day moving average to exceed the 120-day moving average. It gives examples of the moving-average periods as 5, 10, 20, 60, and 120 days. The rationale is that convergence may indicate alignment across time horizons, while positive weekly MACD and the faster average above the slower one are treated as trend-strength conditions.

The post describes the combination as a way to identify stocks with potential longer-term investment value, but it supplies no backtest, stock examples, or performance measurements. It acknowledges that market fluctuations can still produce sharp price moves. Its suggested refinements include using averages or differences among the selected moving averages, though the explanation of these alternatives is imprecise. The conditions are therefore best understood as a technical screening hypothesis; the document does not establish that convergence or the other signals predict returns, nor does it specify execution, risk controls, or a holding period.

Key ideas

• The screen requires at least five moving averages to converge.
• It also requires weekly MACD above zero and the 20-day average above the 120-day average.
• The post interprets these conditions as evidence of trend alignment and relative strength.
• It notes that screened stocks remain exposed to market fluctuations and large price moves.
• No backtest or measured evidence is provided to establish the screen's predictive value.

Tags

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