A-Share Screen for Recent Limit-Ups and Low Float Supply

Summary

This A-share screening rule places stocks in a candidate pool when they have a daily high-low range above 1%, at least one limit-up day in the preceding 25 sessions, and circulating shares no greater than 5.5 billion. The author interprets these conditions as signs of elevated volatility, market interest, and relatively scarce supply. Formula and Python examples show how the rule might be applied to historical daily data.

The article provides no backtest or measured evidence that these signals predict gains. It notes that historical patterns may not persist and that low-float stocks can be less liquid; it also recommends adding fundamental and industry information or other technical filters. The claimed scarcity rationale does not establish that buying pressure will continue, and the examples rely on specific data fields and limit-up identification rules that may require adjustment across stocks and market conventions.

Key ideas

• The candidate pool requires a daily range above 1%, a limit-up within the prior 25 sessions, and circulating shares at or below 5.5 billion.
• The author associates the conditions with volatility, market attention, and limited float supply.
• Low-float stocks may have liquidity risks, and historical signals may fail to predict future returns.
• The proposed rule is not accompanied by backtest results and should be combined with other analysis.

Tags

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