Chinese Stock Screen Using Amplitude, Listing Age, and Rising DEA

Summary

This Chinese equity screening idea selects stocks with daily amplitude above 1, a listing history longer than three years, and a rising DEA indicator. The rationale is that larger price ranges may coincide with greater trading activity, while excluding recent listings is intended to avoid some instability associated with new stocks. An upward DEA reading is treated as a sign of improving market momentum. The article also suggests adding other technical indicators and reviewing research on the companies.

The document warns that the screen omits company fundamentals, technical signals may not predict future prices reliably, and short-term activity does not establish long-term investment value. It gives a formula reference and a Python example, but the code's condition tests whether the latest DEA value is positive rather than whether DEA is rising, so it does not precisely match the stated rule. No backtest, selected-stock results, or evidence of predictive performance is provided.

Key ideas

• The stated screen requires amplitude above 1, more than three years since listing, and rising DEA.
• The rationale combines a price activity filter, a listing-age filter, and a momentum-related indicator.
• The article identifies missing fundamental analysis and the limits of technical signals as risks.
• The code example checks positive DEA rather than a rising DEA trend.
• No performance results or backtest evidence are included.

Tags

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