Amplitude, Morning-Star, and Opening-Gap Stock Screening

Summary

The document outlines a Chinese stock screen combining price amplitude, a morning-star candlestick condition, and an opening price change constrained to between −2% and 5% relative to the prior close. It presents amplitude as a measure of activity, the candle pattern as a possible short-term trend signal, and the opening move as an indicator of market sentiment. It also includes illustrative formula and Python examples for applying these filters.

The author warns that the screen omits other technical measures and fundamental information, and may select risky shares without assessing long-term value. The suggested improvements include adding measures such as MACD and valuation data, considering broader market conditions, and managing position size. The document does not report a backtest or measured returns. Its example code and the prose are not fully aligned about which additional indicators are actually implemented, so the screen should be treated as a rough selection concept rather than a validated strategy.

Key ideas

• The proposed screen combines price amplitude, a morning-star pattern, and an opening move between −2% and 5% relative to the previous close.
• The document interprets amplitude as a proxy for activity and the opening move as a sentiment measure.
• It warns that technical filters alone omit fundamentals and may select high-risk stocks.
• It suggests adding other technical and fundamental measures and applying risk and position controls.
• No backtest results are provided, and the sample implementation does not clearly match all claims about added indicators.

Tags

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