Stock Screening with Converging Moving Averages and a Rising 30-Day Average

Summary

This Chinese equity screening proposal combines three chart-based conditions: at least five moving averages converging, a rounded price shape, and an upward-sloping 30-day average. It suggests adding a MACD check and using multiple data sources. The article includes example calculations for counting averages, estimating curvature, and checking slope, followed by general suggestions for screening stocks.

The rationale is that converging averages and an upward trend may indicate support and potential strength, but the document provides no performance results or empirical validation. It acknowledges reliance on historical data and the risk of overlooking longer-term trends and other factors. The code descriptions also leave key terms and calculations unclear: the convergence check compares rolling averages to current values, while the proposed curvature and slope calculations do not clearly implement the named chart features. The rule should therefore be treated as an informal screening idea, with definitions and calculations made precise before testing.

Key ideas

• The proposed screen looks for at least five converging moving averages, a rounded price pattern, and a rising 30-day average.
• The article suggests adding MACD and drawing on multiple data sources.
• It gives no backtest or other evidence that the combined conditions predict returns.
• The screen relies on historical price data and may overlook longer-term trends.
• The sample calculations do not clearly define or implement convergence, curvature, and slope.

Tags

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