A Stock Rebound Screen Using Amplitude and a Morning Star Pattern

Summary

This note proposes screening Chinese stocks for amplitude above 1, a morning star candlestick pattern, and a close above the previous day's low. The author interprets amplitude as a measure of activity and volatility, the candlestick pattern as a possible short-term trend change, and the closing-price condition as a possible rebound signal. The post includes example indicator logic and a Python illustration for applying the conditions to daily stock data.

The document provides no backtest results or evidence that the screen predicts profitable rebounds. It acknowledges that the filters omit other technical and fundamental information and may behave differently across industries and market directions. It suggests adding indicators and fundamentals and tailoring rules to market context. The code and narrative also do not amount to a fully specified or validated trading system, so the conditions should be understood as a candidate selection method rather than proof of an investment edge.

Key ideas

• The proposed screen combines amplitude above 1, a morning star pattern, and a close above the prior day's low.
• The author treats these conditions as signs of activity, a possible trend shift, and potential rebound behavior.
• The post supplies example screening logic but reports no performance testing.
• The author notes that the rules omit broader technical, fundamental, and market-context factors.

Tags

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