A Chinese Stock Screen Combining Amplitude, Limit-Up Patterns, and Three Down Days

Summary

This stock-selection idea combines amplitude above a threshold, exclusion of specially treated stocks, a five-session limit-up-related pattern, and three consecutive declining sessions. The article frames the consecutive declines as a possible sign of a shift in market sentiment, while specifying that selection should occur before 10 a.m. It includes a Python example for filtering stock data, but does not provide a matching formula implementation.

The author cautions that the method relies on technical conditions and recent price direction, which may not reflect company fundamentals. Industry trends and fundamental analysis are suggested as additions, along with empirical study and ongoing monitoring. The article reports no backtest or performance evidence. Some details, including the exact meaning of the named limit-up method and the relationship between the stated pattern and example filters, are unclear, so the rule needs clarification before it can be evaluated reliably.

Key ideas

• The screen combines amplitude, non-ST status, a five-session limit-up-related condition, and three declining sessions.
• The article proposes that recent consecutive declines may accompany a change in market sentiment.
• The selection is described as occurring before 10 a.m., but no results are reported.
• The author recommends adding fundamental and industry analysis and testing the strategy over time.

Tags

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