A Short-Term Stock Screen Using Amplitude, a Five-Day Average, and a Lower Low

Summary

This post describes a Chinese stock-selection screen requiring daily amplitude above a threshold, the stock’s average price above its five-day moving average, and today’s low below yesterday’s low. It frames the combination as a search for possible short-term rebounds: the moving-average condition indicates relative strength, while the lower low captures a price pullback. The post includes example indicator expressions and a Python sketch that filters and sorts candidate stocks.

The author cautions that the screen relies heavily on technical conditions, cannot fully evaluate a company, and does not establish how far a rebound might extend. No backtest, sample, or performance results are supplied, so the rebound interpretation remains a hypothesis. The Python example also includes a positive percentage-change filter that is absent from the stated final selection rules, and its turnover field may not match the described amplitude criterion. The post recommends adding industry, profitability, market value, and other fundamental checks before assessing candidates.

Key ideas

• The stated screen combines elevated daily amplitude, price above a five-day moving average, and a new low below the prior day’s low.
• The author interprets the pullback within a stronger moving-average context as a possible short-term rebound setup.
• The post provides example indicator logic and a Python sketch but no test results or evidence of predictive performance.
• The code includes an extra positive-change filter and appears to use turnover as a proxy for amplitude.
• The author recommends evaluating fundamentals and company context alongside the technical conditions.

Tags

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