A-Share Screen for Reversal Candles, Daily Range, and 10-Day Gains

Summary

This document describes a Chinese stock screen combining a daily range threshold, a reversal-style candle pattern, and a positive but capped return over the prior ten days. Its stated aim is to find stocks with recent strength while retaining room for further gains. It also gives indicator and Python examples for calculating adjusted returns and identifying candidates.

The article notes that the rules omit company fundamentals and broader market risks, and that a short-term return filter may encourage unstable decisions. It suggests adding capital-flow, industry, and financial measures, and broadening the return horizon. The examples do not establish profitability: the candle-pattern implementation and the prose description are not fully aligned, and no backtest results or risk-adjusted evidence are presented.

Key ideas

• The screen combines a daily range above 1%, a reversal pattern, and a positive ten-day return below 35%.
• The article proposes using the rules to find stocks with recent upward movement.
• It warns that short-term price filters do not account for fundamentals or wider market risk.
• The provided examples do not demonstrate performance, and their pattern definitions are not fully consistent.

Tags

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