Chinese Stock Screen Using Range, Float Size, and Prior-Day Low

Summary

The document describes a stock selection rule combining three conditions: daily amplitude above 1, circulating shares no greater than 5.5 billion, and current closing price above the prior day's low. It presents the first condition as a way to find more active shares, the float limit as a small-cap filter, and the price comparison as a short-term upward signal. It also gives example implementations and proposes ranking qualifying stocks by volume ratio.

The article cautions that the screen omits company fundamentals and captures only short-term price behavior, so it may select overvalued companies or mistake a brief move for a lasting trend. Suggested refinements include combining the rule with valuation and dividend measures, other technical indicators, or machine-learning methods. No backtest results or performance evidence are provided, and the code examples should be checked carefully because their shifted data references may not match the stated prior-day comparison.

Key ideas

• The screen requires amplitude above 1, a circulating share count up to 5.5 billion, and a close above the previous day's low.
• The article frames the amplitude and float filters as ways to find active small-cap stocks.
• It suggests ranking stocks that pass the filters by volume ratio.
• The rule omits fundamental analysis and may mistake short-term price action for a durable trend.
• Possible extensions include valuation measures, other technical indicators, and machine-learning methods.

Tags

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