Chinese Stock Screen Using Range, Recent Highs, and Limit-Down Opens

Summary

This Chinese equity screening idea combines daily amplitude above a threshold, a high matching the highest level across the current and previous day, and a prior-day opening match at the limit-down area. The rationale is to find shares with recent price weakness after notable intraday movement, potentially identifying short-term setups. The document gives indicator-style formulas and a sample workflow that adds moving-average and volume filters.

The screen has substantial limitations. Its central signal relies on one early trading observation and may be vulnerable to manipulation or selection bias; it does not account for the full day’s price behavior. The text recommends incorporating broader price and volume action alongside company fundamentals, industry conditions, and macro factors. The formulas and code are references rather than validated evidence: no backtest, performance results, execution assumptions, or precise treatment of market-specific limit rules is supplied, and some sample conditions may not faithfully implement the stated logic.

Key ideas

• The screen combines intraday amplitude, a two-day high condition, and a prior-day limit-down opening signal.
• The proposed rationale is to identify stocks that have experienced both movement and early-session weakness.
• Additional price, volume, fundamental, industry, and macro information may help assess candidates.
• The document provides example formulas but no backtest or evidence of profitability.

Tags

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