A Chinese Equity Screen Combining Limit-Ups, Price Strength, and Relative Volume

Summary

The post describes a China-focused stock screen based on three filters: rank shares by relative volume and keep the top 100, require a positive prior-session price change without a limit-up close, and select stocks that hit the daily upper price limit more than twice in the preceding ten days. The rationale is to combine current trading activity with evidence of recent strong price momentum while avoiding names that closed at the limit on the immediately preceding day.

The source offers qualitative explanations for each filter and cautions that trading interest and repeated limit-ups do not ensure continued gains; prices may still fall. It suggests adding company fundamentals, valuation measures, and technical indicators, but gives no precise definitions for all calculations, entry or exit rules, holding period, or risk controls. It reports no backtest methodology or performance results. The screen is therefore a strategy idea rather than evidence of a profitable or robust trading system.

Key ideas

• The screen selects the top 100 stocks by relative volume.
• It excludes stocks that closed at the upper price limit in the prior session while requiring a positive prior price change.
• It also requires more than two upper-limit sessions within the preceding ten days.
• The post treats these conditions as signs of attention and short-term momentum, not guarantees of gains.
• No complete trading rules, risk controls, or performance evidence are supplied.

Tags

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