A Chinese Stock Screen Using Amplitude, Float, Volume, and Opening Gaps

Summary

This document describes a short-term Chinese equity screen requiring prior-session price amplitude above 1%, a free float no larger than 5.5 billion shares, current volume above 10,000 lots, and an opening price above the previous close. It explains the intended rationale: volatility may suit short-term trades, smaller floats can bring higher risk and return potential, volume indicates activity, and a gap up may reflect positive sentiment. It also gives example implementations and suggests ranking selected stocks by turnover.

The screen is presented as a starting point, with no performance test or evidence of profitability. The text cautions that it omits company fundamentals, can be affected by broad market moves or company-specific events, and that a higher open does not ensure continued gains. Suggested extensions include adding technical and fundamental measures and adjusting selection to market conditions.

Key ideas

• The screen combines prior-session amplitude, free float, current volume, and a gap above the previous close.
• Higher volume is used as a basic liquidity filter, while a gap up serves as a sentiment proxy.
• The document warns that the screen does not assess financial quality and can select weak companies.
• A gap up may reverse, and market or company events can undermine the selection logic.
• The suggested refinements include fundamental measures, technical indicators, and capital-flow information.

Tags

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