A-Share Screening with Rising Lows, Trading Range, and Valuation Filters

Summary

This article outlines a technical screen for Chinese equities using a trading-range threshold, rising lows, and a close above the prior day's low. It then proposes adding valuation and quality filters: price-to-earnings and price-to-book limits, a history of stable profits, and exclusion of specially treated stocks. The suggested exit rules use the 10-day moving average or a stated loss threshold. The article also gives sample implementations for a screening formula and Python, plus a general suggestion to consider market-trend indicators.

The rationale is that larger ranges may indicate opportunity, rising lows may signal a rebound, and holding above the previous low may reflect near-term strength. No backtest results or performance evidence are provided. The article warns that a technical-only screen ignores company fundamentals and adverse market conditions. Its examples should be checked before use: some code comparisons and shifting logic appear inconsistent with the stated screening rules, and the added filters do not establish that the strategy will be profitable.

Key ideas

• The screen combines a trading-range condition with rising lows and a close above the prior session's low.
• The proposed version adds valuation, profit-history, and special-treatment exclusions.
• Suggested exits reference the 10-day moving average and a fixed loss threshold.
• The article provides no backtest evidence and warns that technical signals omit fundamental and market risks.
• The sample code may not match the described rules and needs validation.

Tags

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