Stock Screen for Sharp Daily Declines and Weekly MA Crossovers

Summary

This Chinese stock selection note describes a technical screen requiring daily amplitude above 1%, a maximum daily decline between 4% and 5%, and a weekly five-period moving average crossing above the ten-period average. It presents the weekly crossover as a longer-horizon trend filter combined with a sharp short-term fall. An accompanying sample uses weekly bars and moving averages, although its code's conditions do not clearly implement the stated daily decline threshold and differ in other details from the prose.

The note cautions that the screen is simple, relies only on technical indicators, and may misread short-term fluctuations. It recommends adding indicators and longer moving averages to provide more context. No backtest, return series, or empirical evidence is reported, so the screen should be treated as a candidate selection rule requiring validation rather than an established strategy.

Key ideas

• The stated screen combines daily amplitude above 1% with a daily decline between 4% and 5%.
• It also requires a weekly five-period moving average crossover above the ten-period average.
• The sample implementation does not clearly match all the stated daily conditions.
• The note warns that technical-only rules can misread short-term price moves.
• No performance evidence is provided, and additional indicators or longer horizons are suggested.

Tags

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