A Chinese Stock Screen Using Price Range, Shape, and Prior-Day Limit Price

Summary

The document presents a Chinese stock-selection rule combining three conditions: a price amplitude threshold, a rounded or arc-like price pattern, and a prior-day opening auction match price at the limit-down level. Its sample formula encodes a close-price threshold, the stock’s relative position within a recent high-low range, and a time-specific comparison involving prior-day prices. The post describes the screen as a way to identify candidates for further selection, rather than specifying a complete entry and exit strategy.

The author cautions that the approach relies heavily on historical price data and omits fundamental factors. Suggested refinements include adding technical indicators, considering fundamentals, and applying stop-loss, take-profit, and broader risk controls. The document provides no backtest results, performance statistics, transaction costs, or clear evidence that the proposed pattern predicts returns. Its formula and rationale should therefore be treated as an unvalidated screening example.

Key ideas

• The screen combines price amplitude, a rounded price shape, and a prior-day opening auction condition.
• The example formula measures the close relative to a recent trading range and checks a time-specific price condition.
• The post recommends adding technical and fundamental filters and explicit risk controls.
• No performance evidence or transaction-cost analysis is provided.

Tags

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