A Chinese Stock Screen Using Price Range, Opening Gaps, and Relative Volume

Summary

This note describes a short-term Chinese equity screen using a price-range threshold, current trading volume above a minimum, a higher open, and a volume ratio between specified bounds. It explains the volume ratio as current volume relative to a ten-period average and includes formula and Python examples intended to screen stocks with active trading and elevated relative volume.

The author frames the conditions as signs of trading activity and possible continuation, but warns that the method depends on short-term price and volume behavior and can fail in volatile markets. Suggested improvements include adding market context, sentiment, and company fundamentals. The document gives no performance results or validation. Its prose and sample code also differ on whether a higher open is required, and the sample calculations use daily data for a condition described as intraday, so the implementation should not be treated as a verified specification.

Key ideas

• The screen combines a minimum price range and current volume with an opening-gap condition and bounded relative volume.
• Relative volume is defined as current volume divided by a ten-period average.
• The method targets short-term trading activity and may be unreliable during sharp market moves.
• The examples are unvalidated and do not consistently implement the stated higher-open condition.

Tags

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