Breakout-Stage Stock Screen Using Amplitude and Turnover Ratios

Summary

This Chinese equity screen looks for stocks with price amplitude above 1 and a ratio between 0.5 and 2. The ratio is described as yesterday’s turnover rate multiplied by today’s opening-auction volume divided by yesterday’s volume. The article also places candidates in what it calls the early stage of a major advance; its code example uses moving-average ordering as a trend filter. The intended signal combines price movement, trading activity, and a rising-trend context.

The article provides a selection rationale and sample code, but no backtest or return evidence. Its description of the early advance stage is subjective, and the listed filters do not assess earnings, financial condition, or other fundamentals. It recommends adding fundamental and capital-flow measures and price-volume analysis, but does not show that these additions improve results. The code example also uses data fields and calculations whose consistency with the stated auction-volume ratio is unclear.

Key ideas

• The screen requires price amplitude above 1 and a turnover-based ratio between 0.5 and 2.
• The ratio uses yesterday’s turnover rate and the relationship between current auction volume and prior-day volume.
• The strategy targets an early rising phase, with moving-average ordering shown as a trend filter in the example.
• The article identifies subjective trend-stage classification and missing fundamental analysis as limitations.
• It provides no evidence from backtesting or live performance.

Tags

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