A-Share Screen for Rising Lows After a Sharp Daily Decline

Summary

This note proposes a short-term A-share screen requiring price amplitude above 1%, a daily decline between 4% and 5%, and a sequence of higher recent lows. The rising-low condition is intended to identify stocks whose short-term price floor is moving upward despite a sizable daily loss. The document includes sample indicator logic and Python code describing how such candidates might be selected.

The article offers no backtest, measured returns, or evidence that the conditions predict rebounds. It characterizes the approach as potentially high risk and focused on technical behavior, with limited attention to company fundamentals or long-term prospects. It recommends combining technical and fundamental analysis and considering diversification, risk controls, asset allocation, and holding period. The implementation examples should be treated cautiously: they are labeled as references, and the code's percentage-change units and amplitude field are not fully explained. The note does not specify position sizing, trade exits, or a complete portfolio process.

Key ideas

• The proposed screen combines amplitude above 1%, a daily loss between 4% and 5%, and three successively higher recent lows.
• The rising-low pattern is used to identify possible short-term rebounds after a sharp decline.
• The approach is technically focused and may select companies with poor long-term prospects.
• The note provides no measured returns or backtest evidence and describes the strategy as risky.
• It recommends adding fundamental analysis, diversification, and risk controls.

Tags

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