Chinese Equity Reversal Screen Using Turnover and Recent Limit-Ups

Summary

The document presents a Chinese equity screening idea that combines turnover between 3% and 12%, at least one limit-up move within the prior 25 days, and a reversal or “wraparound” price pattern. It describes the setup as a way to find active stocks that may rebound, and includes indicator logic and a sample implementation for filtering stocks. The final selection description also calls for excluding stocks whose gains have become excessive.

The author cautions that the screen can incur substantial losses when a selected stock fails to rebound or resumes falling. Suggested refinements include stricter reversal criteria using support and resistance and filtering outsized advances. No historical performance analysis or quantified evidence is provided, and the included code does not establish that the screen is profitable. The conditions therefore describe a candidate stock-selection rule, not a validated trading strategy; execution, position sizing, and out-of-sample testing are left unspecified.

Key ideas

• The screen seeks stocks with turnover from 3% to 12% and a limit-up event in the prior 25 days.
• A reversal pattern is used to identify a possible rebound after the earlier surge.
• The proposed universe focuses on Chinese stocks and excludes some listings and special-treatment shares.
• The author warns that failed rebounds and renewed declines can cause large losses.
• Support, resistance, and filters for excessive gains are suggested as possible refinements.

Tags

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