Stock Screen Combining Moving-Average Alignment, Market Cap, and Trend

Summary

This Chinese stock-screening proposal selects shares with at least five overlapping moving averages, a circulating market value above 10 billion yuan, and a 20-day moving average above the 120-day moving average. The author interprets the moving-average overlap as agreement across short- and long-term price measures, the market-cap filter as favoring larger and more liquid companies, and the moving-average comparison as a sign of stronger recent trend.

The document outlines these screening conditions and includes skeletal Python-style function references, but does not define how moving-average overlap is measured or provide backtest results. It notes risks from sector concentration, market-wide moves, and company-specific events. Suggested refinements include adding technical and financial measures, though the source does not specify thresholds or demonstrate that these additions improve results. The rules are best read as an initial screen; the stated claims about stability, liquidity, and trend are rationales rather than empirical findings.

Key ideas

• The screen combines at least five overlapping moving averages with a circulating market value above 10 billion yuan.
• It also requires the 20-day moving average to exceed the 120-day average.
• The source treats overlap as trend agreement and the market-cap cutoff as a liquidity-oriented filter.
• The method lacks a precise overlap definition and reported performance evidence, and it flags sector, market, and company risks.

Tags

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