A-Share Screen Using Price Amplitude and Recent Limit-Up Events

Summary

This Chinese-language post proposes a technical screen for mainland Chinese stocks. It selects shares with daily high-to-low amplitude above one percent, at least one limit-up event during the prior 25 trading days, and at least two limit-up events within 500 days. The author interprets larger amplitude as greater movement potential and repeated limit-ups as signs of market attention and possible near-term strength. The post includes example indicator-formula and Python implementations, but does not provide a backtest, portfolio construction rules, or measured returns.

The author cautions that the screen relies on historical price behavior and may overlook company fundamentals or the broader market trend. Limit-up events reflect trading constraints and do not necessarily indicate a change in intrinsic value. Suggested refinements include adding fundamental and industry filters, conditioning on market direction, combining technical indicators, and diversifying positions. The listed code is presented as a reference, so its limit-up definitions and data handling would need careful review before research or use; the post does not establish that the rules are profitable.

Key ideas

• The screen requires daily price amplitude above one percent and recent limit-up activity.
• It also requires at least two limit-up events in a 500-day lookback.
• The post supplies example implementations but reports no backtest results or realized performance.
• The author recommends accounting for fundamentals, market direction, additional indicators, and diversification.
• Limit-up events can arise from trading rules and do not prove that a stock’s underlying value has changed.

Tags

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