Stock Screening with Buying Activity, Price Change, and Moving Average Trend

Summary

The post presents a Chinese stock screening rule using three conditions: today’s buying proportion must exceed a threshold, the day’s price change must remain within specified bounds, and the 20-day moving average must be above the 120-day average. This last condition is intended to favor stocks whose shorter-term trend is stronger than their longer-term trend. The post also gives sample code to calculate buying proportion, price changes, and the two averages, then assemble them into a score table.

The explanation cautions that the screen relies on trading activity and moving averages while omitting company finances, industry conditions, and other market context. It suggests adding such information or other technical indicators, but does not test those changes. The code’s price-change transformations appear inconsistent with the stated bounds, and the post supplies no backtest results, selection performance, transaction costs, or evidence that the screen is profitable. The rule is therefore a screening example rather than a validated strategy.

Key ideas

• The screen combines a buying-activity threshold, a bounded daily price move, and a short-over-long moving-average condition.
• The moving-average comparison is used as a basic trend filter.
• The sample code calculates inputs and returns them together as a score table.
• The post identifies missing company and industry context as a limitation.
• No backtest evidence or performance results are supplied, and the code’s price-change logic may not match the stated rule.

Tags

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