Active Stock Screening with Range, Volume, Gap Ups, and Position Growth

Summary

This note presents a short-term Chinese equity screen based on daily price range greater than 1, volume above 10,000 lots, an opening price above the previous close, and a reported increase in positions of at least 5%. It frames range, volume, and the opening gap as signs of trading activity and market sentiment, while the position-growth measure is intended to capture bullish participation. The article includes a formula and a Python sketch to illustrate filtering candidates.

The author identifies noise and possible manipulation of the position-growth measure as risks, and suggests adding momentum or oscillator indicators and fundamental measures such as returns on assets or dividend yield. The code example’s data calls and calculations do not clearly establish that all conditions are computed consistently for equities, and the article supplies no backtest or evidence that these signals predict returns. The screen is best understood as a proposed candidate filter that would need careful data validation and testing before use.

Key ideas

• The proposed screen requires range above 1, volume above 10,000 lots, an open above the prior close, and position growth of at least 5%.
• The rules use activity and participation measures as proxies for short-term bullishness.
• The author warns that the position-growth reading may be noisy or manipulated.
• The examples are not accompanied by validated performance results, and the code’s data handling warrants scrutiny.

Tags

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