A-Share Screen Using Auction Turnover and a Morning-Star Pattern
Summary
The document describes an A-share selection rule that filters for stocks with an amplitude above one, ranks them by the day’s auction amount, and keeps the top five that match a named morning-star pattern. It presents the pattern as a possible market-bottom and reversal signal, combined with auction activity as a measure of market interest. The post also gives example indicator conditions and a Python outline for retrieving stock data and applying filters.
No backtest, return series, or comparison with a benchmark is provided, so the document does not establish that the screen is profitable. Its own caveats are that the rule focuses on trading activity and chart patterns while omitting company fundamentals, and that relying on one pattern may be risky. It suggests adding financial measures and other technical signals, but does not specify how to validate or combine them. The code is illustrative and includes platform-specific indicator references that may require adaptation.
Key ideas
- The screen combines an amplitude threshold with a ranking by auction amount.
- It selects at most five stocks that also match a specified morning-star pattern.
- The pattern is treated as a possible reversal signal, not as demonstrated evidence of future gains.
- The post warns that the screen omits fundamentals and depends heavily on one technical pattern.
- It recommends adding financial and technical criteria, without providing validation results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.