A Chinese Stock Screen Combining Daily Range and Weekly Candle Direction
Summary
The document describes a Chinese equity screening rule that selects stocks with a daily trading range above a threshold, excludes stocks that hit the daily price limit on the prior day, and requires the latest weekly candle to close above its open. It presents the range condition as a way to find more volatile stocks and the weekly candle as a sign of recent upward movement. Example indicator and data-processing snippets are included, though they do not establish that the screen was tested or profitable.
The author cautions that the screen relies on technical signals and gives little consideration to company fundamentals, industry conditions, or the broader market. The document recommends adding fundamental and macroeconomic checks and diversifying holdings. Those suggestions are general; no selection results, backtest, or precise risk controls are provided. The rule is therefore best read as a screening idea rather than a validated trading strategy.
Key ideas
- The screen requires a daily range above a stated threshold and a prior-day close that was not limit-up.
- It also selects stocks whose latest weekly candle closes above its open.
- The document provides example indicator logic but no performance evidence or backtest results.
- It identifies reliance on technical conditions and missing market and fundamental context as limitations.
- It suggests adding fundamental analysis and portfolio diversification.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.