Chinese Stock Screen Using Daily Range, Reversal Pattern, and Dividend Ratio

Summary

This proposal screens Chinese stocks using three conditions: daily high-low amplitude above 1%, a reversal or “wrap-up” pattern, and a 2019 dividend ratio above 25%. Its indicator reference defines the amplitude threshold as a one-percent range and describes the pattern through a change in the sign of consecutive close-to-close moves. The Python example instead invokes a candlestick-pattern function, so the pattern definition is not consistent across the two implementations. A dividend field is also required from the data provider.

The author presents the combination as a way to pair price action with historical distributions, but provides no backtest, sample, or evidence that these conditions identify attractive investments. The stated risks include missing less actively traded shares and favoring expensive stocks, as well as the possibility that a high payout is unsustainable or misleading. Suggested improvements include adding sentiment and profitability measures. The screen is best understood as a candidate-generation rule, not a validated strategy; its reversal signal and historical dividend measure need precise definitions and testing.

Key ideas

• The proposed screen requires daily amplitude above 1%, a reversal pattern, and a 2019 dividend ratio above 25%.
• The formula and Python example use different definitions of the reversal condition.
• The rule combines a price-action filter with a historical dividend measure but provides no performance evidence.
• The post warns that a high payout may be unsustainable and that low-activity stocks may be overlooked.
• The author suggests adding sentiment and profitability information for broader evaluation.

Tags

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