A Chinese A-Share Screen Using Daily Range, K, and Market Value
Summary
The document describes a stock screen for Chinese A-shares that selects stocks with a price range greater than 1%, excludes Beijing-listed shares, applies a K reading below 20 as an oversold condition, and caps circulating market value at 10 billion. It includes example formulas and Python-style filtering steps, then sorts qualifying stocks by circulating market value. The document does not define the K indicator or provide historical test results, so the precise calculation and effectiveness of the oversold threshold cannot be assessed from the material alone.
The accompanying discussion identifies limits: the rules omit company fundamentals, excluding one region may leave other regional risks, and historical technical indicators cannot guarantee future moves. It suggests adding fundamental and valuation analysis, broader regional screening, and other technical indicators. These are general improvement suggestions rather than tested changes; no evidence is given that they improve returns or risk-adjusted performance.
Key ideas
- The screen requires price amplitude above 1% and excludes Beijing-listed shares.
- It treats a K reading below 20 as an oversold condition.
- It limits circulating market value to 10 billion and ranks qualifying shares by that measure.
- The document provides sample screening logic but no backtest or evidence of profitability.
- It cautions that technical rules omit fundamentals and cannot ensure future performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.