A Chinese Stock Screen for Moderate Gains and Arc-Shaped Price Patterns

Summary

This post describes a short-term Chinese equity screen combining daily amplitude above 1, an arc-shaped price pattern, and a recent gain between -5 and 2.6. Its indicator formula also approximates the arc condition by locating the close near the lower part of its 50-session high-low range. The accompanying rationale is that moderate movement and a restrained recent return may identify candidates with room to rise.

The post offers no backtest, performance record, or evidence that the pattern predicts returns. It acknowledges that the arc criterion is subjective and that the screen ignores fundamentals and broader market conditions. It recommends combining technical, fundamental, and macroeconomic information before selection; the rule should therefore be treated as an idea for investigation rather than a validated strategy.

Key ideas

• The screen combines amplitude, an arc-shaped price pattern, and a bounded recent return.
• The formula represents the arc condition using the close's position within its 50-session price range.
• The author suggests combining the technical screen with fundamental and macroeconomic analysis.
• No backtest or performance evidence is provided, and the pattern definition may be subjective.

Tags

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