A Chinese Stock Screen Using Opening-Gap, Price, and Range Filters

Summary

This proposed Chinese stock screen combines three conditions: an absolute price below 12 yuan, an opening move from the prior close of less than six percent at 9:25, and a price amplitude above one percent. The accompanying formula reference expresses the range condition through the open-to-prior-close move and the opening move through the high relative to the prior close, so its calculations do not clearly match the stated amplitude rule. The article presents the filters as a short-term selection method using price, volatility, and the early session move.

The post cautions that recent market conditions can quickly make the filters stale, that a low share price alone can exclude higher-priced candidates, and that risk controls are insufficiently specified. It suggests adding market and sector context, financial measures, and policy considerations. Although it includes implementation examples, it supplies no backtest, portfolio construction, transaction costs, trade exits, or evidence of performance. The rule is therefore a screening idea, and its timing and formula definitions should be reconciled before any evaluation.

Key ideas

• The screen combines a share-price ceiling, an early-session move limit, and a minimum movement condition.
• The stated amplitude rule and the formula reference appear to use different calculations.
• The selection criteria focus on recent price action and do not specify trade entries, exits, or risk limits.
• The author recommends incorporating broader market, sector, financial, and policy information.
• No performance evidence or backtest is reported.

Tags

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