A-Share Screen Using Price Range, Candle Shape, and Bollinger Bands

Summary

This A-share selection rule combines an amplitude threshold, a rounded or arc-like recent price pattern, and a close between the Bollinger middle and upper bands. The indicator formula operationalizes the shape condition using the stock’s position within the recent five-day high-low range, then checks the close against Bollinger Bands calculated over a 20-period window. The article interprets these conditions as a way to find relatively measured price action with potential trend or range characteristics.

The post does not define the amplitude unit or precisely explain why the five-day range calculation represents an arc shape. It offers no historical test, return figures, or comparison with a benchmark, so it does not establish that the screen improves selection or reduces risk. The author cautions that Bollinger Bands can lag or mislead during sharp market moves and that technical filters omit fundamentals. Suggested refinements include combining other indicators, moving averages, and company fundamentals; those additions are proposals rather than tested improvements.

Key ideas

• The rule screens for amplitude above a threshold and a close between the Bollinger middle and upper bands.
• A five-day high-low range calculation is used as a proxy for a rounded price pattern.
• The post gives no backtest or evidence of improved returns from the combined filters.
• Bollinger signals may lag during sharp market moves, and technical conditions omit fundamentals.

Tags

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