Stock Screening with Weekly Moving Average Crossovers and a 250-Day Filter

Summary

The document describes a Chinese equity screening rule combining three conditions: price amplitude above a threshold, a weekly five-period moving average crossing above a ten-period average, and the previous close above the 250-day moving average. It presents these as signs of price activity and an improving trend, then gives example implementations and says qualifying stocks may be sorted by circulating market capitalization.

The post offers no backtest, performance figures, or evidence that the selected stocks outperform. Its examples also appear inconsistent: the stated rule specifies a weekly moving average crossover, while the supplied Python calculates moving averages from daily closes and checks whether the shorter average is above the longer one. The indicator formula’s crossover condition is internally contradictory, and the amplitude description does not clearly match its volume-based code. The author cautions that the screen omits company fundamentals and broader market risks, and suggests adding fundamental and industry information. The rule should therefore be treated as an incomplete screening example rather than a validated investment strategy.

Key ideas

• The screen combines price amplitude, a weekly moving average crossover, and a close above the 250-day average.
• The post suggests sorting qualifying stocks by circulating market capitalization.
• The examples do not consistently implement the stated weekly crossover or amplitude conditions.
• No performance test is provided, and the screen omits fundamentals and market risk.

Tags

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