A-Share Screening with Amplitude, Reversal Patterns, and Regional Exclusion

Summary

The document describes a Chinese A-share stock screen combining daily price amplitude, a reversal or engulfing-style pattern, and exclusion of Beijing-listed stocks. It presents the final logic as amplitude above 1%, a reversal pattern within the recent three days, and removal of Beijing A-shares. It also includes example indicator and Python implementations, though their calculations do not align perfectly with the written rules: the Python amplitude uses close-to-close change, and its named candlestick indicator may not represent the described pattern.

The accompanying discussion says regional exclusion can reduce exposure to one market segment but may also omit attractive stocks, while technical-only screening overlooks company fundamentals and broader market or industry conditions. No backtest, performance evidence, or precise validation of the proposed signals is supplied. The screen is therefore a basic rule-based selection example, not evidence that the conditions predict returns or reduce risk reliably.

Key ideas

• The screen combines an amplitude threshold with a recent reversal pattern and excludes Beijing-listed A-shares.
• The written rule specifies a reversal within the preceding three days.
• The sample implementations may not match the written definition of amplitude and reversal.
• The article recommends adding market, industry, and fundamental data, but reports no performance tests.

Tags

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