A-Share Screening with High Amplitude, Reversal Signals, and Positive P/E

Summary

This note describes an A-share stock screen combining daily price amplitude above 1%, a reversal pattern, and positive trailing-twelve-month P/E. The amplitude condition targets stocks with larger daily ranges, while the reversal condition is intended to identify a possible change in price direction. Positive P/E excludes companies with negative earnings under this valuation measure. The article also provides example indicator and Python implementations.

It offers no backtest, performance statistics, or evidence that these filters predict returns. The reversal definition is not consistent across the examples: the indicator formula compares consecutive price-direction signs, while the Python example uses a named candlestick pattern. P/E alone can be affected by economic and industry conditions and does not fully establish valuation. The article suggests adding other valuation or technical measures, industry allocation, and risk controls, but does not test those changes.

Key ideas

• The screen combines amplitude above 1%, a reversal signal, and positive trailing P/E.
• High amplitude is used to focus on stocks with larger daily price ranges.
• The indicator and Python examples define the reversal condition differently.
• The note reports no historical performance test and cautions that P/E alone is an incomplete valuation measure.

Tags

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