Chinese Stock Screen Using Range, a Rounded Price Pattern, and Prior-Low Recovery

Summary

This Chinese market stock-screening proposal combines three price conditions: daily amplitude above 1, a rounded price shape, and a close above the previous day’s low. Its formula operationalizes the rounded-shape condition by locating the current close near the lower portion of the 50-period closing-price range. The accompanying explanation presents the range filter as a way to seek active but not excessively volatile shares, and the close-above-prior-low condition as a possible rebound sign.

The document supplies a screening formula but no backtest, trade results, or defined portfolio and execution rules. It cautions that the screen omits company fundamentals and is oriented toward short-term decisions; the proposed improvements are to add technical and fundamental inputs and compare signals across chart periods. The relationship between the amplitude threshold and volatility is not quantified, and a close above the prior low alone does not establish that a rebound is strong or likely to continue.

Key ideas

• The screen combines an amplitude threshold, a rounded price configuration, and a close above the previous session’s low.
• The rounded configuration is approximated using the close’s position within a 50-period high-low range.
• The article frames the conditions as short-term selection criteria but provides no performance evidence.
• It identifies the omission of fundamentals and recommends combining additional factors and time periods.

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