A Chinese Stock Screen Combining Price Range Shape and Market Capitalization
Summary
The post proposes a stock-selection screen combining three conditions: price amplitude above a threshold, a rounded price shape, and circulating market capitalization in a stated band. It interprets the amplitude condition as a way to find active but not excessively volatile stocks, the rounded shape as relatively smooth movement around a moving average, and the size range as targeting companies with some scale. An indicator expression is included to represent the conditions, using a one-period price change, a 50-period high-low range, and capitalization bounds.
The author characterizes the approach as suitable for short-term selection alongside a medium-term size criterion, but provides no backtest, sample definition, signal timing, or evidence that the screen predicts returns. The post itself cautions that it omits fundamentals and financial condition, and recommends considering technical, fundamental, macroeconomic, and company financial information together. The described thresholds and qualitative explanations therefore amount to a screening idea, not a validated trading strategy. Fees, liquidity, survivorship effects, and the meaning of the “rounded” pattern are not analyzed, so the material does not establish that the screen is profitable or robust.
Key ideas
- The screen combines price amplitude, a rounded price-range condition, and a circulating market-capitalization band.
- Its indicator expression uses a one-period price comparison and a 50-period high-low range.
- The author links the price conditions to activity and smoother movement, but provides no empirical support.
- The post warns that the screen omits fundamentals and company financial condition.
- No backtest or trading-risk analysis is supplied, so predictive value remains unverified.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.