Chinese Stock Screen Using Price Range, Shape, and Recent Limit-Up

Summary

This stock-selection idea combines three technical conditions: an amplitude greater than one, a rounded price pattern, and at least one limit-up event within the preceding twenty-five days. The accompanying formula operationalizes the rounded pattern by comparing the prior close with the low and high over a five-day window, then requiring the normalized position to be below one half. It also checks for a qualifying recent close-to-close rise within the lookback period.

The rationale offered is that amplitude may identify active stocks, the rounded shape may favor a more gradual pattern, and a recent limit-up may indicate market attention. The article cautions that purely technical screening omits company fundamentals and industry context, and that a limit-up may not signal lasting strength. It recommends adding fundamental and industry analysis and periodically reviewing the conditions. No backtest results or evidence of profitability are provided, so the screen should be treated as a hypothesis for further evaluation rather than a validated strategy.

Key ideas

• The screen combines an amplitude threshold, a rounded price pattern, and a recent limit-up event.
• The rounded-pattern condition compares the prior close with the recent five-day price range.
• A limit-up within the stated lookback is used as a proxy for market attention.
• The article warns that technical conditions alone omit fundamentals and industry context.
• No backtest evidence is provided to establish the screen’s profitability.

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