A-Share Screen for Convertible-Bond Issuers with Large Reversal Candles

Summary

This A-share screening proposal combines daily price amplitude above 1%, an outstanding convertible-bond name, and a large reversal-style candle. The example formula treats a session as qualifying when the close is at least 5% above the open or the open is at least 5% above the close. The Python example additionally filters the stock universe and convertible-bond listings, then sorts selected names by market value. The article describes the conditions as a way to focus on volatile shares and market behavior.

The stated caveat is that the screen ignores fundamentals such as profitability and debt; valuation measures are suggested as additions. The term “reversal” is not clearly defined as a multi-session pattern: the supplied formula instead checks the absolute open-to-close move in either direction. The code also contains implementation details that may not align exactly with the described amplitude rule. No backtest, return data, or evidence of predictive value is provided, so the selection criteria should be treated as an unvalidated screen.

Key ideas

• The screen combines amplitude above 1% with an outstanding convertible-bond listing and a large open-to-close move.
• The formula flags either an upward or downward candle body of at least 5% of the opening price.
• The article acknowledges that the rules omit company fundamentals and suggests adding valuation measures.
• The reversal label is ambiguous because the formula checks a single session rather than a clearly defined multi-session pattern.
• No performance test or predictive evidence is reported.

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