A Stock Screen Combining Rising Lows, Range, and Control Metrics

Summary

The article presents a Chinese stock screen based on three conditions: price amplitude above one, rising bottoms across successively longer lookbacks, and a “today control” reading above 21. It frames the first two as price-structure filters and the third as a measure of current trading conditions. It also suggests adding volume or moving-average checks and tailoring the screen to stock and industry characteristics.

The post includes example formulas and partial Python-style logic, but the implementation does not clearly match the stated conditions: the example substitutes price standard deviation for amplitude and a volume-to-range ratio for the control metric. It gives no backtest results or evidence that the screen predicts returns. The article itself warns that short-term signals may be disrupted by news or unusual trading and that control measures may be unreliable. The screen therefore needs precise definitions and validation before use.

Key ideas

• The proposed screen combines amplitude, a sequence of rising bottoms, and a control reading threshold.
• The article suggests adding volume or moving-average filters to refine stock selection.
• Its example implementation uses proxies that may not match the stated amplitude and control conditions.
• No performance evidence is provided, and the article identifies short-term and data reliability risks.
• The selection logic should be validated with consistent indicator definitions and strategy testing.

Tags

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