Stock Screening with Moving-Average Alignment, Limit-Ups, and Trend

Summary

This note outlines a Chinese A-share screening idea combining three price-based conditions: at least five moving averages converging, at least two limit-up sessions in the previous 500 days, and the 20-day moving average above the 120-day average. It interprets convergence as a sign of stable prices that may precede a larger move, prior limit-ups as evidence of strong buying interest, and the moving-average relationship as an upward trend filter.

The document also acknowledges that the screen omits company fundamentals and broad market risk, so qualifying stocks may still have weak businesses or suffer losses during volatile conditions. It recommends adding financial health and profitability checks and considering market risk, but gives no tested results or detailed implementation: its Python example is truncated. The rationale is therefore a qualitative screening hypothesis, not evidence that the conditions predict returns or define a complete trading system.

Key ideas

• The screen combines moving-average convergence, prior limit-up sessions, and a rising short-to-long moving-average relationship.
• The 20-day average above the 120-day average serves as a trend filter.
• The proposed interpretation of prior limit-ups is strong buying interest, but no return evidence is provided.
• Fundamental quality and market-wide risk are omitted and would need separate assessment.

Tags

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