A-Share Screen for High Amplitude and Low Stochastic K Values

Summary

This stock-selection rule screens Chinese A shares for daily price amplitude above one percent, codes beginning with 60, and a stochastic K reading below 20. The stated rationale is to find relatively volatile stocks whose recent price position is weak, potentially creating an opportunity for a rebound. The reference formula also sorts qualifying names by trading amount, while the Python example computes the stochastic reading for each stock.

The post cautions that relying on technical indicators alone can miss company fundamentals, and that combining high volatility with short-term weakness may favor risky names while overlooking durable value. It suggests adding other technical and fundamental measures and considering the stability of capital flows. No backtest results, holding period, exit rules, or evidence of expected returns are provided. The code examples also differ in details from the written screen, so implementation should be checked carefully before use.

Key ideas

• The screen selects stocks with daily high-low amplitude above one percent and codes beginning with 60.
• It requires a stochastic K value below 20 as a measure of recent price weakness.
• The proposed rationale links greater volatility with profit potential and weakness with a possible buying opportunity.
• The author warns that technical conditions alone can overlook fundamentals and increase risk.
• The document supplies example formulas but no performance evidence or complete trade management rules.

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