A-Share Screening with Price Amplitude, Sustained ROE, and Rounded Patterns

Summary

This post proposes screening Chinese equities for daily price amplitude above 1, return on equity above 15% for five consecutive years, and a rounded price pattern. It presents the combination as a way to pair a volatility condition with sustained profitability and a technical shape. The post also suggests adding moving averages, RSI, or more valuation measures, and mentions machine learning as a possible way to reduce subjective pattern judgments.

No performance results or empirical validation are provided. The rounded pattern is not precisely defined, so its identification depends on judgment, and the example formulas contain placeholders and inconsistent ROE-year conditions. The author notes that the pattern may fail to predict price direction and that the screen can exclude other promising companies. Treat it as a rough screening concept requiring precise definitions and backtesting, rather than a validated strategy.

Key ideas

• The proposed screen combines price amplitude above 1 with five years of ROE above 15% and a rounded price formation.
• The rounded pattern is subjective and is not specified as a reproducible quantitative rule.
• Moving averages, RSI, and valuation measures are suggested as additional filters.
• The post provides no backtest evidence and flags the risk of missing other strong stocks.

Tags

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