A Chinese Stock Screen Using Range, Recent Gains, and the 250-Day Average

Summary

The document describes a Chinese equity screening idea combining a large daily price range, a recent single-day gain of at least 10% within the past 25 sessions, and a closing price above the 250-day moving average. The intended rationale is to find volatile stocks with evidence of strong price movement that remain above a long-term trend measure. Example indicator logic expresses the range condition using a comparison with 20-day ATR, checks a daily return threshold, and tests the moving average condition.

The article warns that price-only filters omit company fundamentals and broader market influences, and that relying on past price behavior may not adapt to changing conditions. It also flags chasing sharp advances as a source of price and trading-cost risk. Suggested additions include other technical measures, fundamental and industry analysis, and explicit entry, exit, and cost considerations. The examples leave these additions unspecified and provide no backtest results. The sample code also does not fully encode the stated 25-session lookback, so implementation details need clarification before evaluation.

Key ideas

• The screen combines high price range, a recent large daily gain, and price above a long-term moving average.
• The written rule calls for checking whether a qualifying gain occurred within the previous 25 sessions.
• The sample indicator logic uses a daily range relative to ATR, a return threshold, and a moving average test.
• The article cautions that price-only selection omits fundamentals and can encourage costly chasing.
• No performance evidence is supplied, and proposed extra filters and trade rules are left undefined.

Tags

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