Stock Screening with Price Amplitude, Moving Average Crossovers, and Trend Onset

Summary

This document describes a Chinese equity screening rule that looks for stocks with amplitude above 1, three moving averages in a bullish ordering, and a signal interpreted as the start of a strong advance. Its example uses 5-, 10-, and 20-period averages, an amplitude filter, and a FLEXUP indicator. It also mentions turnover limits in sample code, which are not part of the stated final screening rule.

The discussion frames the setup as a technical trend filter and advises judging the trend signal alongside broader market conditions and other indicators. It provides no backtest, performance figures, or empirical evidence that the combined conditions predict returns. The author cautions that the trend-onset concept is broad and sensitive to short-term changes, and recommends flexible adjustment and risk management. The supplied code and indicator references are illustrative; their definitions and implementation details are not validated in the document.

Key ideas

• The screen combines amplitude above 1 with bullish alignment of three moving averages and a trend-onset signal.
• The example uses 5-, 10-, and 20-period moving averages.
• The document recommends interpreting the trend signal with broader market conditions and other indicators.
• It gives no backtest evidence, and the trend-onset condition may be sensitive to short-term changes.

Tags

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