Chinese Stock Screen Using Range, Share Float, and a 250-Day Average

Summary

The document describes a Chinese equity screening rule that combines prior-day price range, a maximum share float, and price above a 250-day moving average. It presents the range filter as a way to find more active stocks, the float cap as a small-cap constraint, and the moving-average condition as a trend filter. Example formulas and Python snippets illustrate calculating the conditions and intersecting the resulting stock lists; one version ranks candidates by volume ratio.

The article warns that the screen omits company fundamentals, can select expensive or weak businesses, and may misread a trend that is about to reverse. It suggests adding valuation and dividend measures, other technical indicators, and broader market assessment. It provides no backtest results, trading rules for entries or exits, or evidence that the filters improve returns. The code examples also differ in timing details, so the intended use of prior-day values should be checked before implementation.

Key ideas

• The screen combines a prior-day range threshold, a cap on freely tradable shares, and price above its 250-day moving average.
• The article interprets the share-float condition as a small-cap filter and the moving average as a trend filter.
• The examples intersect the conditions and optionally rank eligible stocks by volume ratio.
• The screen excludes fundamental analysis and may expose users to valuation risk or trend reversals.
• The document provides no performance evidence for the proposed screen.

Tags

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