A Chinese Stock Screen Using Range, Prior Limit Status, and Rising Averages

Summary

This post outlines a Chinese equity selection rule combining three conditions: daily high-low amplitude above 1, no limit-up session on the prior day, and upward divergence in the current moving averages. Its indicator reference defines amplitude relative to the previous close and represents moving-average divergence as the five-day average minus the ten-day average. The Python example further checks that the five-day average exceeds the ten-day average and has risen from the prior observation.

The rationale is to seek shares with some price movement and a positive short-term trend while avoiding stocks that had just hit the daily upper limit. The post supplies screening logic and sample implementation, but no backtest, performance figures, or evidence that the conditions predict returns. The author notes that technical signals omit company fundamentals and suggests combining them with other indicators and financial data. The implementation details and threshold choices are examples, not a validated strategy.

Key ideas

• The screen combines price amplitude, prior-day limit-up status, and short-term moving-average direction.
• The indicator reference measures amplitude against the previous close and compares five-day and ten-day averages.
• The post provides sample selection logic but no performance testing or return evidence.
• Fundamental and financial factors are absent from the core screen and are suggested as possible additions.

Tags

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