Chinese Stock Screen Using Range, Morning-Star, and Five-Day Average Rules

Summary

This Chinese-language post describes a stock selection screen combining daily price range, a morning-star-related candlestick condition, and a close above the five-day moving average. Its stated rationale is to find shares with price movement, a possible short-term trend change, and an upward short-term trend. The supplied formula expresses the range threshold as a fraction of the open and checks the prior close against recent prices, alongside the moving-average condition.

The post also provides Python code using Tushare daily data to apply related filters across listed stocks. It recommends adding further technical and fundamental measures, such as relative volume and price-to-book, and adjusting selection rules for overall market risk. However, the narrative, formula, and code do not clearly agree on every detail of the range calculation and candlestick pattern. No backtest results or risk-adjusted performance are reported, and the post cautions that the screen may fail in high-risk markets or omit relevant company and market information.

Key ideas

• The screen combines a price-range threshold, a morning-star-related pattern, and a close above the five-day moving average.
• The author presents the conditions as a way to capture activity and short-term upward movement.
• The post suggests adding relative volume, valuation measures, and market-risk context.
• The formula and sample code do not fully align in how they define the filters.
• No performance evidence is provided, and the strategy may fail under elevated market risk.

Tags

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