A Stock Screen Combining High Amplitude, Rising Lows, and Industry

Summary

This article outlines a Chinese stock selection screen combining three conditions: amplitude above a stated threshold, a rising sequence of lows intended to represent a strengthening base, and membership in selected industries. It frames the screen as a blend of volatility, technical price structure, and industry classification. The post includes example logic for expressing these conditions in a screening platform and Python, although the examples differ in how they operationalize amplitude and the rising-low condition.

The article warns that filtering by company or industry type narrows the investment universe and that industry selection alone cannot capture a stock’s risk or return. It recommends considering additional indicators, market conditions, investor objectives, and portfolio allocation. No backtest, sample period, benchmark comparison, or realized performance is provided, and some criteria remain underspecified, including the amplitude calculation and what constitutes an acceptable industry fit. The screen is therefore a rough selection template that would need precise definitions and independent evaluation before use.

Key ideas

• The proposed screen combines price amplitude, rising lows, and selected industry groups.
• The rising-low condition is intended to identify stocks whose price base is strengthening.
• Industry filtering can constrain the opportunity set and does not independently determine risk or return.
• The implementation examples use different calculations for amplitude and rising lows.
• The article supplies no backtest results, so the proposed screen’s effectiveness is unknown.

Tags

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