Stock Screening with Price Amplitude, a Moving Average, and Three Crossovers

Summary

This Chinese equity screen looks for stocks with price amplitude above one, an opening price near the ten-day moving average, and simultaneous bullish crossover signals from three indicators. The examples use MACD, RSI, and KDJ: MACD and KDJ cross above their signal lines, while RSI crosses above 50. The sample formulas define the opening-price band as five percent above or below the moving average and rank qualifying names by volume. The stated aim is to find stocks showing short-term volatility and technical strength.

The article warns that technical signals can be unstable during unusual price moves, that simultaneous crossovers do not ensure future gains, and that the screen omits company fundamentals. It recommends considering fundamentals and tighter risk controls, but provides no backtest, performance results, or validation of the thresholds. The rules are therefore a proposed screening approach, not demonstrated evidence of an effective trading strategy.

Key ideas

• The screen combines amplitude above one with an opening price within five percent of the ten-day moving average.
• It requires bullish crossover conditions from MACD, RSI, and KDJ at the same time.
• The examples rank stocks meeting the conditions by volume.
• The article cautions that technical crossovers can fail and that the screen omits fundamental analysis.
• No backtest or performance evidence is provided for the proposed rule.

Tags

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