Stock Screening with Relative Volume, Small Float Value, and Moving Averages

Summary

This Chinese-language post describes an equity screen that ranks candidates by volume ratio, filters for circulating market value at or below 5.5 billion yuan, and requires the 20-day moving average to exceed the 120-day average. The stated rationale is to combine relative trading activity, smaller capitalization, and a short-term trend above a longer-term trend. It also suggests adding turnover and trading-volume measures and adjusting conditions to fit market style.

The post warns that low circulating value can coincide with poor liquidity, volume strength may fail to translate into gains, and an extended short-term trend can face a pullback. It offers no backtest, performance data, or detailed execution and portfolio rules, so the screen is a hypothesis for candidate selection rather than demonstrated evidence of an investable edge. The code examples are incomplete or inconsistent: one labels volume divided by circulating value as volume ratio, while the stated screen uses a separate circulating-value threshold.

Key ideas

• The screen ranks stocks by volume ratio and applies a circulating market value ceiling of 5.5 billion yuan.
• It selects stocks whose 20-day moving average is above the 120-day moving average.
• The post interprets relative volume and a rising short-term trend as signs of strength, while noting possible pullback risk.
• A small circulating value may create liquidity constraints and amplify price moves.
• The post supplies no backtest evidence, and its illustrative indicator code is not fully consistent with the described screen.

Tags

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