A-Share Screen for Smooth Price Action and Strong Earnings Growth
Summary
This note describes an A-share stock screen combining three conditions: price amplitude above 1, a rounded or arc-like price pattern, and year-over-year growth in net profit attributable to parent-company shareholders above 20% and no more than 100%. It interprets the amplitude condition as a way to find active stocks, the chart pattern as relatively gentle movement around moving averages, and earnings growth as a fundamental quality signal. A sample indicator expression is provided, but no Python implementation or performance results are included.
The author flags that the screen omits macroeconomic conditions and may select stocks poorly or encourage excessive focus on short-term gains. Suggested refinements include combining technical, fundamental, and macroeconomic inputs and adding indicators such as MACD. The note does not define the arc-pattern calculation in detail, explain how the earnings ratio is computed, or provide backtest evidence, so the conditions would need clarification and independent testing before use.
Key ideas
- The screen combines price amplitude, an arc-like chart pattern, and net profit growth.
- It targets active stocks with comparatively smooth price movement and recent earnings growth.
- The note provides an indicator expression but no performance evidence or Python implementation.
- It recommends adding broader market context and other indicators to address the screen’s limitations.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.