A Chinese Stock Screen Using Range, Shape, and 10-Day Return

Summary

This Chinese equities screen combines three chart-based conditions: an amplitude above 1, a rounded price shape, and a positive 10-day return below 35%. The accompanying formula represents the rounded-shape condition by comparing the previous close’s position within the five-day low-to-high range. The article frames the screen as seeking active stocks with some upward movement while avoiding an excessively sharp short-term rise.

The document offers no backtest, benchmark, transaction costs, or evidence that these filters improve returns. It warns that technical signals can lag and that short-term price behavior may be sensitive to market risk; fundamentals and industry context are omitted. It suggests adding those inputs, along with capital flows and sentiment, but does not specify how to combine or validate them. The example is therefore a screening hypothesis, not a demonstrated strategy.

Key ideas

• The screen looks for stocks with amplitude above 1, a rounded five-day price profile, and a positive 10-day return below 35%.
• The rounded-shape condition uses the prior close’s location within the recent five-day trading range.
• The article proposes combining technical filters with company, industry, capital-flow, and sentiment information.
• It supplies no performance evidence and notes that technical signals may lag and omit fundamental risks.

Tags

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