A Technical Stock Screen Using Rising Lows and Auction Returns

Summary

The post outlines a Chinese equity screening idea combining a minimum price-amplitude condition, rising lows, and an opening-auction return within a specified band. It also proposes excluding specially treated stocks and describes an exit rule based on the stock price crossing Bollinger Band boundaries. The article includes example implementations for a charting platform and Python, but the code is illustrative and its variables and formulas are not fully explained in the text.

The author characterizes the approach as technically driven and notes that its auction-return range is subjective, technical signals may omit changes in company fundamentals, and multiple indicators can conflict. Fundamental valuation measures are suggested as possible additional filters, with machine learning mentioned as another possible refinement. No backtest, transaction-cost analysis, benchmark comparison, or performance evidence is provided, so the post presents a screening recipe rather than a validated strategy. The stated exit description and the sample Python logic also differ in how they refer to Bollinger levels, leaving the precise sell rule unclear.

Key ideas

• The screen combines price amplitude, rising lows, and a bounded opening-auction move.
• The proposed universe excludes specially treated shares.
• The post describes a Bollinger Band-based exit condition.
• The author warns that technical filters can overlook fundamentals and produce conflicting signals.
• No empirical performance results or trading-cost analysis are supplied.

Tags

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