Chinese Stock Screen Combining Amplitude, a Low-Price Rule, and Increased Activity

Summary

This document presents a Chinese equity selection rule using amplitude above 1, a condition described as K-line below 20, and today’s increase ratio above 5%. It supplies formula and Python-style examples that add a nonnegative MACD-related filter, compare recent turnover and volume with prior averages, and use a rolling close-price condition. The stated goal is to identify volatile stocks with low-price or oversold characteristics alongside increased trading activity.

The article cautions that indicators can stop working as market conditions change, that industry context is omitted, and that rising activity does not necessarily mean genuine accumulation. It recommends considering macroeconomic and industry research, adjusting the universe and indicator weights, and investigating the reasons behind the activity. No backtest or return evidence is supplied. The descriptions and examples do not fully agree: “K-line below 20” is rendered as close below 20 in one formula and as a rolling-minimum close condition in the Python example, while the increase-ratio definitions also differ. The rule therefore needs clarification and validation before use.

Key ideas

• The stated screen combines amplitude above 1, a K-line condition below 20, and an increase ratio above 5%.
• The examples include additional MACD, turnover, and volume comparisons.
• The article treats rising activity as a possible, but uncertain, sign of accumulation.
• It recommends adding industry and macro context and examining the reasons for increased activity.
• The formula and Python examples define key conditions differently, and no performance evidence is given.

Tags

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