A China Stock Screen Combining Amplitude, Price Position, and a Lower Low

Summary

This post proposes screening Chinese stocks for a large daily amplitude, a prior-day condition labeled as main-force control, and a current low below the previous day’s low. The rationale is to find volatile stocks with presumed large-player support that have pulled back intraday or day over day, potentially creating a short-term speculative opportunity. A reference formula represents the control condition with close relative to a five-day moving average; the sample Python also filters for positive price-to-earnings values and sorts by market capitalization.

The post identifies short-term losses and neglect of company fundamentals as risks, and suggests adding financial and valuation measures. It provides no backtest, returns, risk statistics, or evidence that its proxy reliably measures large-player activity. The written amplitude threshold and the sample code’s threshold are not clearly aligned, and the code’s data-field assumptions are not explained. The screen is therefore a loosely specified idea rather than a reproducible, validated strategy; it does not define entry, position sizing, or exit rules.

Key ideas

• The proposed screen combines high amplitude, a prior-day price-to-moving-average condition, and a new lower low.
• The post frames the setup as a volatile stock experiencing a short-term pullback.
• Its sample code adds a positive price-to-earnings filter and sorts candidates by market capitalization.
• The author flags short-term downside and neglect of fundamentals, suggesting financial and valuation filters as possible additions.
• No performance evidence is provided, and the written threshold and sample code differ in how amplitude is expressed.

Tags

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