Stock Screening with Three Moving Average Crossovers and a Size Filter

Summary

The document describes a Chinese equity screening rule that combines daily price amplitude, three moving averages crossing in bullish order, and a minimum company size. Its example uses 5-, 10-, and 20-period moving averages, checks that amplitude exceeds 1%, and filters for market capitalization of at least 200 million in the platform’s stated units. The screening result is intended to guide stock selection alongside broader market conditions.

The article explains that company size can serve as a rough indication of competitive position and market share, but historical size data cannot account for future market or policy changes. It recommends combining technical signals with financial and macroeconomic information and choosing a suitable size range. The document provides formula and Python references, but no performance evidence or backtest results, so the rule’s predictive value and practical robustness are not established.

Key ideas

• The screen requires bullish ordering and crossover among three moving averages.
• It also filters for price amplitude above 1% and company size above the stated threshold.
• Company size is presented as a rough business characteristic, not a reliable forecast of future conditions.
• The article recommends combining technical, financial, market, and macroeconomic factors.
• No backtest evidence is provided to establish the screen’s performance.

Tags

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