A Chinese Stock Screen Using Amplitude, Price, and the Five-Day Average

Summary

This note describes a simple Chinese equity screen based on price movement and a short-term moving average. It selects stocks with amplitude above 1, a price below 20, and the stock’s average price above its five-day moving average. The article also provides example formulas and Python logic intended to illustrate how the conditions could be calculated and combined.

The author characterizes the screen as targeting stocks with noticeable volatility and an upward price position relative to the recent average. The note gives no backtest, performance figures, or evidence that the criteria predict returns. It warns that technical indicators alone omit company fundamentals and broader market conditions, and that moving averages can mislead during sideways markets or trend reversals. Suggested refinements include incorporating financial or macroeconomic data, weighting criteria, and adding other trend measures. The examples should be treated cautiously: their expressions do not consistently match the prose description, so implementation details need independent verification before use.

Key ideas

• The screen combines an amplitude threshold, a price ceiling, and a close above the five-day moving average.
• The proposed criteria aim to find volatile stocks whose prices are above a short-term trend reference.
• The article offers illustrative formula and Python implementations but provides no empirical performance evidence.
• Technical-only screening can miss fundamental risks, and moving averages may give misleading signals in ranging or reversing markets.
• The author suggests adding fundamental data, weighting signals, and using additional trend indicators.

Tags

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