A Chinese Stock Screen Using Range, Two-Day Highs, and OBV

Summary

This Chinese stock-selection note combines three conditions: daily price amplitude above a threshold, the current high matching the highest value across two days, and positive OBV. The intended screen seeks stocks showing substantial short-term movement, a recent high, and a positive volume-based signal. It also suggests adding fundamental, valuation, and industry information to broaden the selection process.

The document acknowledges that the screen may miss fundamental risks and that institutional-flow interpretations have limits. Its formula uses OBV above zero as a proxy for institutional activity, which the note does not validate as a direct measure of institutional buying. No historical test, benchmark, transaction-cost analysis, or performance results are supplied, so the proposed upside rationale remains untested.

Key ideas

• The screen requires amplitude above a threshold, a two-day high, and positive OBV.
• OBV is used as a proxy for institutional direction, though the document does not establish that equivalence.
• The note recommends adding fundamental, valuation, and industry measures.
• No backtest or performance evidence is provided.

Tags

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