Chinese Stock Screen Using Low K and Recent Price Strength

Summary

This Chinese equities screening idea combines four filters: daily amplitude above 1, exclusion of ST-designated stocks, selection before 10 a.m., and a five-session price-strength condition. The accompanying Python example approximates the strength filter by checking whether each close is at or above its five-session moving average for five sessions, then requires a stochastic-style K value below 20, calculated over a nine-session range. The article frames the low K reading as a possible short-term rebound signal.

No backtest, return figures, or performance comparison is provided. The author warns that the strategy targets uncertain short-term moves and that K can fluctuate enough to produce errors. The description also leaves key implementation details unclear, including how the named limit-up method maps to the sample’s moving-average rule, how amplitude is scaled, and how intraday timing is applied to historical data. It suggests adding other technical and fundamental inputs, but does not test those changes.

Key ideas

• The screen combines amplitude, non-ST status, an early selection time, recent price strength, and a low K reading.
• The sample defines recent strength as five consecutive closes at or above a five-session moving average.
• The K condition uses the close relative to the rolling nine-session high-low range and selects values below 20.
• The article presents low K as a possible rebound clue, while warning that the setup is uncertain and sensitive to indicator swings.
• No historical performance evidence is supplied.

Tags

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