Chinese Stock Screen Combining Reversal Patterns, Small Capitalization, and Profitability

Summary

This Chinese equity screen combines daily amplitude above one percent with a recent reversal pattern, a market capitalization limit of one hundred billion yuan, and a requirement that the company has no losses. The article frames the pattern and amplitude conditions as technical filters and the capitalization and earnings conditions as additional company-selection criteria. It includes example indicator and Python logic intended to operationalize the filters, including a candlestick pattern function and fundamental data fields.

The article provides no backtest, benchmark, or evidence that these criteria improve returns. It notes that market risks and company fundamentals are not assessed comprehensively, and that the size cap could exclude larger opportunities. The implementation examples also appear inconsistent with the prose: the pattern code does not clearly establish the described reversal, and the amplitude calculation differs between the written formula and Python example. The rules and data handling therefore need verification before research or use.

Key ideas

• The screen combines amplitude, a recent reversal pattern, a capitalization ceiling, and positive profitability.
• The article includes example code using price data and fundamental fields to apply the criteria.
• No tested returns or benchmark comparisons are provided.
• The article notes that market and fundamental risks remain incompletely assessed.
• The stated pattern and amplitude rules may not match their sample implementations.

Tags

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