A Chinese Stock Screen for Rising Bases and Institutional Control

Summary

This stock-selection idea combines three conditions: daily amplitude above one, evidence of main-fund control on the previous day, and a rising price base. It is intended to find volatile shares attracting large investors while still near a possible trend bottom, where a rebound might develop. The article also mentions moving-average comparisons and KDJ or MACD indicators as ways to describe or refine the technical setup.

The document provides no backtest, performance figures, or operational validation for the screen. It cautions that the method omits company fundamentals, that a rising base does not guarantee a trend reversal, and that technical signals require judgment. It suggests adding business measures such as revenue and profit and using indicators to assess trends and timing, but does not specify a tested rule for combining them. The included sample implementation uses several filters that do not exactly match the headline conditions, so it should be treated as illustrative rather than as a faithful, validated strategy.

Key ideas

• The screen looks for stocks with amplitude above one, prior-day main-fund control, and a rising base.
• Its rationale is to identify volatile stocks that may be attracting institutional attention near a possible rebound area.
• The article warns that a rising base can fail and that the screen does not account for company fundamentals.
• MACD, RSI, and business measures are suggested as possible additions, without evidence that they improve results.

Tags

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