Chinese Stock Screen Combining Reversal Patterns, Amplitude, and Turnover

Summary

This note describes a Chinese equity screen that combines daily amplitude above 1, a reversal or engulfing-style pattern, and turnover between 2% and 9%. It presents these filters as a way to identify stocks with notable price movement and a possible change in direction. The article supplies indicator formulas and a Python example, but it reports no backtest, sample, or trading results.

The examples are not fully consistent: the Python snippet uses a candlestick pattern function, adds a fixed-price condition, and includes an additional pattern calculation that is not part of the stated final screen. The article also acknowledges that technical signals alone omit company fundamentals and macro conditions, and that the pattern may need overnight and next-day data for interpretation. It recommends considering fundamentals, capital flows, market conditions, and the stock’s trend when refining the filters. There are no defined entry, exit, or risk-sizing rules.

Key ideas

• The stated screen requires amplitude above 1, a reversal pattern, and turnover between 2% and 9%.
• The note provides formula and Python examples but presents no evidence of historical profitability.
• The Python example adds a fixed-price filter and pattern calculations beyond the final stated criteria.
• Technical filters may miss fundamental and broader market influences, while reversal signals can depend on subsequent data.
• The author recommends incorporating fundamentals, capital flows, and market context.

Tags

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