A-Share Screening with High Amplitude and a Reversal Pattern

Summary

This stock-selection rule combines three filters: daily price amplitude above 1%, data from 2021, and a reversal or engulfing-style condition. The document describes the reversal condition through comparisons of smoothed percentage changes in recent closing prices and includes example implementations in two trading platforms. It frames amplitude as a way to find more active stocks and the reversal filter as a possible signal of a change in price direction.

The post gives no backtest, performance figures, or evidence that the rules predict returns. Its own caveats include weak results in unfavorable markets and lag in the reversal measure, which can delay signals. It suggests adding fundamental or other technical filters, adjusting indicator parameters, applying stop-losses and diversification, and periodically testing the rules. The year constraint makes the screen specific to 2021 data and does not establish that it generalizes to other periods.

Key ideas

• The screen requires price amplitude above 1%, a 2021 observation, and a reversal condition.
• The reversal condition compares smoothed recent price changes to identify a possible directional turn.
• The post provides example formulas but no evidence of historical or live performance.
• The reversal measure may lag, and results may weaken in adverse market conditions.
• The suggested refinements include adding other filters, risk controls, and periodic backtesting.

Tags

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