Chinese Stock Screen Using Amplitude, Five-Day Trend, and Positive Returns

Summary

This Chinese stock screen selects shares with amplitude above 1, a closing price above the five-day moving average, and a positive return. Its indicator examples express amplitude relative to the previous close, compare the close with the moving average, and check the daily price change. The article describes higher amplitude as a source of trading opportunities and the moving-average and return filters as signs of upward momentum.

The author notes that price-only screening can select speculative or theme-driven stocks while ignoring company quality. Suggested refinements include adding profitability and earnings measures, looking for stronger long-term operating records, and setting loss and profit controls. The document gives formulas and sample code but no backtest, benchmark, or evidence of realized profitability. Its final description adds fundamental and multi-year criteria that are not implemented in the initial three-condition screen, so readers should distinguish the proposed extensions from the actual sample logic.

Key ideas

• The basic screen requires amplitude above 1, price above the five-day moving average, and positive return.
• The article interprets these filters as signs of volatility and short-term upward movement.
• It warns that price-only filters may favor speculative stocks and omit business fundamentals.
• Suggested extensions include profitability, earnings quality, a longer operating record, and risk controls.
• The examples do not provide backtest evidence, and the final proposed screen goes beyond the implemented conditions.

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