A Short-Term Stock Screen Using Range, Rising Averages, and Price Gains

Summary

The document proposes a short-term screen for main-board Chinese stocks using three conditions: daily price amplitude above a threshold, a rising and spreading moving-average pattern, and a daily gain greater than one percent. It presents these as signs of volatility and recent upward price movement. The accompanying indicator descriptions and sample implementation outline how the criteria might be applied, but the implementation details are illustrative and do not establish a validated trading system.

The post cautions that the screen relies heavily on recent market behavior and can admit unsuitable stocks because its thresholds are broad. It suggests adding longer-term indicators, valuation measures, and industry-level filters for further selection. No backtest results, risk-adjusted returns, transaction costs, or evidence of persistent predictive power are supplied, so the screen should be treated as a simple signal recipe rather than a demonstrated strategy.

Key ideas

• The screen combines daily price amplitude, a rising moving-average pattern, and a recent price gain.
• Its stated universe is main-board stocks in the Chinese market.
• The criteria target recent upward movement and may be sensitive to market cycles.
• The post recommends combining the screen with longer-term, valuation, and industry filters.
• The document gives no performance testing or transaction-cost analysis.

Tags

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