Stock Screening with Amplitude, Moving Average Crossovers, and Rising DEA

Summary

This document describes a Chinese equity screening rule that selects stocks with amplitude above a threshold, three moving averages in a bullish crossover arrangement, and a rising DEA line. It frames the combination as a way to find relatively strong stocks while giving added weight to recent price direction. The article also outlines a possible workflow for ranking and investing in a selected subset.

The evidence is a rule description and illustrative indicator formulas and Python snippets; it provides no backtest results or performance measurements. The author cautions that technical signals can shift with market conditions and that the screen omits company fundamentals and broad market risk. The code is presented as a reference and may need adaptation. The article suggests adding further technical, fundamental, and industry information before using the screen.

Key ideas

• The screen combines an amplitude threshold with bullish alignment among three moving averages and a rising DEA reading.
• The proposed signals are intended to identify relatively strong stocks with improving short-term price behavior.
• The article provides example formulas and code, but no evidence of tested returns.
• The rule omits fundamentals and broad market risk, so the author recommends incorporating additional information.

Tags

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