China Stock Screen Using Price Range, Rounded Shape, and Turnover

Summary

This stock-selection note proposes screening equities using three conditions: a daily amplitude above one, a rounded price pattern, and prior-day actual turnover between 3% and 28%. The accompanying explanation presents the amplitude condition as a way to find stocks with activity but not excessive fluctuation, the rounded shape as a filter for gentler movement, and the turnover band as a proxy for market interest and liquidity. It includes a technical formula reference based on the close relative to the previous close, a 50-period price range, and lagged volume relative to free shares.

The note offers no backtest or performance statistics, and its claims about lower risk and trading costs are not demonstrated. It acknowledges that chart shape and amplitude judgments can be subjective, that screened stocks may have weak fundamentals, and that turnover data may lag. It suggests adding technical and fundamental checks, but does not define or test those additions. The screen is best read as a proposed candidate filter rather than a complete trading strategy.

Key ideas

• The proposed screen combines an amplitude threshold, a rounded price pattern, and a bounded prior-day turnover rate.
• The formula reference uses recent price-range position and lagged volume relative to free shares.
• The document gives no backtest results or evidence that the screen improves returns.
• It warns that chart-pattern judgments, company fundamentals, and delayed turnover data can create screening risks.
• Additional technical and fundamental filters are suggested but not specified or evaluated.

Tags

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