A Chinese Stock Screen Combining Range, Large-Order Flow, and Reversal Bars

Summary

The document presents a short-term Chinese equity screening idea that combines daily price amplitude, ranking by net large-order volume, and a reversal-bar pattern called a covering or engulfing reversal. The stated rationale is to find active stocks and possible turning points. Its sample formula checks whether the prior close fell, compares the prior bar's high with the earlier bar's low, requires the latest bar's range to exceed one percent of the prior close, and checks that trading amount is positive. A Python example also applies a trading-amount threshold before evaluating price conditions.

The material cautions that fast market moves can make timely entries and exits difficult and that reversal patterns can lag or produce false signals. The sample implementations do not fully encode the stated large-order ranking, and the screening rules are not supported by reported backtests or performance statistics. The document recommends further technical and fundamental filters, adaptive rules, and risk and position controls, but supplies no tested specification for those additions.

Key ideas

• The proposed screen combines price amplitude, net large-order flow ranking, and a reversal-bar condition.
• The rationale is to select active stocks and identify possible short-term reversals.
• The sample code checks prior-bar price relationships and requires the latest range to exceed one percent of the prior close.
• The examples also apply a trading-amount filter, but do not fully implement the stated large-order ranking.
• The author warns about delayed or false reversal signals and advises risk and position controls.

Tags

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