A 2021 Stock Screen Combining Daily Range and Reversal Candles

Summary

This document outlines a Chinese equity screen that combines a daily price-range threshold with a reversal or engulfing-style candle pattern, using 2021 data. Its stated logic selects stocks whose high-to-low range exceeds one percent and that show a recent reversal pattern. The post also provides an indicator-formula reference and a Python sketch, though the code details do not align perfectly with the written conditions.

The author presents the combination as an improvement over chasing price rises, but supplies no backtest, performance figures, or validation. The discussion notes that relying on one historical year may overfit and that the screen omits market-wide risk and company fundamentals. It suggests adding broader technical, market, and fundamental filters; therefore the screen is best understood as a basic candidate-selection rule, not a demonstrated trading strategy.

Key ideas

• The screen pairs a price-range threshold with a recent reversal candle condition.
• The example restricts its historical selection to 2021.
• The document provides formula and Python references, but their implementation details are not fully consistent with the prose.
• The post reports no performance evidence and warns about historical-data dependence and missing market and fundamental factors.

Tags

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