Chinese Stock Screen for Range, Rising Averages, and a 10-Day Price Level

Summary

This Chinese stock-selection example screens for shares with daily amplitude above 1, upward-diverging moving averages, and an opening price near the 10-day moving average. The accompanying Python example calculates amplitude relative to the previous close, compares recent closing prices with a short moving average, and allows the opening price to fall within a band around the 10-day average of opens. The description frames the opening-price condition as a way to find stocks near a relatively low level.

The article offers no backtest results or evidence that these conditions predict gains. Its prose, formula reference, and sample code do not define every condition consistently: for example, the moving-average direction test and the description of upward divergence may not match. It also cautions that technical filters omit fundamentals and market themes, and that a single 10-day reference can exclude candidates. The proposed additions of other indicators and fundamental information are suggestions, not validated improvements.

Key ideas

• The screen combines daily amplitude, moving-average direction, and proximity of the open to a 10-day average.
• The sample calculates amplitude using the day’s high and low relative to the prior close.
• The article’s explanation and sample moving-average conditions may not be fully consistent.
• No backtest or evidence of profitability is provided.
• The article identifies omitted fundamentals and market conditions as limitations.

Tags

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