A Shenzhen Stock Screen Combining Rising Lows, Amplitude, and Valuation

Summary

This article describes a China A-share screening rule for Shenzhen main-board stocks. It combines amplitude above 1 with rising lows, a price-to-earnings ratio from 0 to 29.01, and a price-to-book ratio from 0 to 3.11. It provides example implementations in a charting formula and Python, though the code is presented as a reference rather than a validated system.

The article frames the valuation filters as a way to find potential value stocks and says the exchange-board restriction is intended to avoid higher-risk market segments. It warns that the screen may return few stocks and that valuation multiples alone can misidentify companies. It suggests adding business quality, growth prospects, industry competition, and other indicators, but gives no backtest, performance evidence, or operational definitions for rising lows and amplitude beyond the examples.

Key ideas

• The screen combines amplitude above 1 and rising lows with Shenzhen main-board eligibility.
• It limits candidates using specified price-to-earnings and price-to-book ranges.
• The article presents charting-formula and Python examples, but does not establish that they are tested or equivalent.
• Valuation multiples alone can misclassify stocks, and tight filters may leave few candidates.
• The author recommends considering company operations, prospects, and industry context as additional inputs.

Tags

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