A Chinese Stock Screen Using Price Range, Shape, and Price Level

Summary

This post proposes a Chinese equity screening rule combining an amplitude threshold, a rounded recent price pattern, and a specified share price. Its formula checks the amplitude, measures where the prior close sits within the recent five-session high-low range, and selects shares at the stated price level. The author presents the rounded pattern as a way to find gentler price movement and the amplitude filter as a way to favor active but relatively contained trading.

The post supplies a formula reference but no Python implementation, historical test, or evidence that the screen improves returns. It also acknowledges that these filters can lag and cannot reliably predict price direction. It recommends adding technical and fundamental criteria and using stop-loss and take-profit rules, without specifying how to set them.

Key ideas

• The screen combines an amplitude condition with a rounded-pattern condition and a fixed share-price threshold.
• The pattern condition locates the prior close within the recent five-session trading range.
• The post offers no backtest or measured evidence for the screen's effectiveness.
• The author notes that the filters can lag and suggests adding other signals and risk controls.

Tags

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