A Stock Screen for Wide Range, Reversal Candles, and Two-Day Highs

Summary

The document describes a simple Chinese equity screening rule: select stocks with a daily high-to-low range above 1%, a reversal-style candle condition called “fanbao,” and a high equal to the maximum over the current and prior day. It presents the rule as a way to find stocks showing a clear upward direction, and sketches implementations using a charting formula and Python with technical-analysis libraries.

No performance results, backtest, or evidence of profitability are provided. The explanation also cautions that the screen omits fundamentals and other market inputs, and that concentrating on price strength may overlook other opportunities. Its sample formulas do not define “fanbao” consistently: the charting condition compares consecutive close-to-close signs, while the Python example invokes a named candlestick pattern. The examples therefore need clarification and validation before use. The suggested extensions include adding fundamental, flow, or sentiment filters, but these are not tested in the document.

Key ideas

• The screen combines a daily range threshold with a reversal-style candle signal and a two-day high condition.
• The stated purpose is to identify stocks with signs of upward direction.
• The document provides example logic but no backtest or performance evidence.
• The two sample implementations describe the reversal condition differently, so the signal needs verification.
• Fundamentals, capital flows, and sentiment are suggested as possible additional filters.

Tags

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